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US bond yields hit highs in more than two years before Fed decision

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By Karen Brettell

NEW YORK, March 15 (Reuters) – U.S. Treasury yields rose to the highest in more than two-and-a-half years on the eve of an eventual Federal Reserve rate hike for the first time. in three years.

* Investors’ expectations have grown that the US central bank will have to be more aggressive to curb rising prices, after recent data showed annual inflation in February accelerated at the fastest pace in 40 years.

* A report released on Tuesday also showed that US producer prices rose strongly in February, at an annual rate of 10%, after a similar rise in January.

* The Fed “will probably show a little bit of aggression as inflation doesn’t seem to be going away,” said Tom di Galoma of Seaport Global Holdings in New York.

* Investors believe that the Russian invasion of Ukraine will further accelerate inflation, due to the imposition of sanctions on Moscow by Western countries.

* “It probably adds more stress to the supply chain, and I think that accelerates inflation throughout the year,” Di Galoma said.

* The yield of the goodies years was trading at 1,857%, after touching 1,894% overnight, its highest level since August 2019.

* The benchmark 10-year note return was trading at 2.158%, after rising to 2.169%, its highest since June 2019.

* The yield curve between two-year and 10-year notes steepened three basis points to 30 basis points.

(Edited in Spanish by Carlos Serrano)

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