U.S. Treasury yields increase as investors weigh inflation and global economic growth

June 01, 2022: -On Tuesday, U.S. Treasury yields surged as investors kept weighing the increasing inflation globally and the chance of a slowdown in economic growth.

The benchmark 10-year Treasury note yield was higher by 6.1 basis points at 2.81% at 7:14 a.m. ET. The yield on the 30-year Treasury bond jumped from 3.7 basis points to 3.013%. Yields move inversely to prices, and one basis point equals 0.01%.

On Tuesday, according to the Eurozone data released, prices rose for a seventh straight month, with inflation reaching 8.1% for May. Oil prices grew broadly on Tuesday, adding to concerns of strong inflation delaying economic growth.

Regardless, a U.S. inflation reading on Friday showed that pricing pressures could ease, which boosted sentiment.

“There’s been progress over the past two weeks, and it appears we have met peak inflation and peak hawkishness,” wrote Tom Essaye of The Sevens Report. “But the key is the speed of the decline, and right now, it’s not fast enough to say this key to the bottom has been satisfied.”

This week, the investor will be focusing on jobs data, with the near watched nonfarm payroll report due out on Friday.