U.S. Treasury yields climbed Tuesday morning, with the 10-year rate hitting 1.19%, despite concerns about slowing growth.
The benchmark 10-year Treasury bill yield climbed 2 basis points to 1.192% at 4:20 a.m. ET. The yield on 30-year Treasury bonds rose 1 basis point to 1.864%. Yields move in the opposite direction to prices. One basis point is equal to 0.01%.
The 10-year yield fell to 1.15% on Monday, after data showed the US manufacturing sector expanded at a slower pace in July than the month before.
The spread of the delta variant of the coronavirus was also a concern for investors. The seven-day average of daily coronavirus cases in the United States reached 72,790 on Friday, surpassing the peak seen last summer when the country did not have a licensed Covid-19 vaccine, according to data compiled by the Centers for Disease Control and Prevention.
In addition, Federal Reserve Governor Christopher Waller told CNBC on Monday that the central bank could start cutting its bond purchases as early as October.
Fed governor Michelle Bowman is scheduled to speak at a central bank governing council-sponsored research seminar on efforts for an inclusive labor market recovery Tuesday at 2 p.m.
On the data front, the August IBD / TIPP Economic Optimism Index is expected to be released at 10 a.m. ET on Tuesday. June factory order data is also expected to be released at 10 a.m. ET.
An auction is due to take place on Tuesday for $ 20 billion in 42-day bills.
– CNBC’s Yun Li contributed to this market report.