The 10-year Treasury yield topped 1.69% early on Tuesday morning, ahead of the release of a key inflation report, due to come out before the opening bell on Wall Street.
The March reading for the consumer price index is set to come out at 8:30 a.m. ET. Economists polled by Dow Jones are projecting the headline index to rise by 0.5% month-over-month and 2.5% year-over-year.
Treasury yields have jumped from just below 1% since the end of January, over fears of inflation rising as the U.S. economy recovers from the coronavirus pandemic.
Eric Lonergan, fund manager at M&G, told CNBC's “Squawk Box Europe” Tuesday that he believed bond markets had now “priced in a kind of post-crisis normalization” with the recent jump in yields.
He also said that an anticipated rise in inflation had been “so well-flagged now, (that) everybody is expecting some kind of temporary increase.”
Traders will also likely be keeping an eye on the auction of $24 billion of 30-year bonds, as a gauge for investor appetite for long-dated government debt.
An auction for $40 billion of 42-day bills is also scheduled on Tuesday.
— CNBC's Patti Domm contributed to this report.
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