U.S. government debt prices traded lower Tuesday morning as investors considered the outlook on future interest rate hikes and monitored U.S. House Speaker Nancy Pelosi’s trip to Asia.
At around 4:20 p.m. ET, the yield on the benchmark 10-year Treasury note rose to 2.756% and the yield on the 30-year Treasury bond rose to 3.015%. Yields move inversely to prices.
Traders absorbed comments from Chicago Fed President Charles Evans, who said Tuesday that the Federal Reserve could proceed with 50 or 75 basis point rate hikes at the central bank’s September meeting should inflation continue to tick lower.
“If you really thought things weren’t improving…50 is a reasonable assessment but 75 could also be okay. I doubt that more would be called for,” Evans said.
The yield on the 10-year Treasury note climbed on the back of those comments.
Investors are questioning whether the Federal Reserve will have to reduce the pace of monetary tightening, given that several economic readings have shown the United States economy is slowing down.
Investors are also monitoring Tuesday U.S.-China relations as Pelosi is expected to meet with Taiwanese officials despite objections from China.
St. Louis Fed President James Bullard is addressing an audience at 6:45 p.m. ET.
U.S Treasury yields move higher on Pelosi’s Taiwan visit – CNBC