TREASURES – US bond yields are recovering from yesterday’s collapse

NEW YORK, March 14 (Reuters) – U.S. Treasury bond yields rose on Tuesday after a sharp decline in the previous session as investors pondered the fallout from banking shocks and assessed the impact of persistently high inflation data on monetary policy. The 2-year US Treasury yield rose 28.9 basis points to 4.323%, while the 10-year Treasury yield rose 13 basis points to 3.645%. US interest rate futures now represent an 80% chance of a 25 basis point rate hike. at the March Fed meeting, while the odds of the regulator abstaining are around 19%. Last week – before the bankruptcy of Silicon Valley Bank – the market was supposed to raise the rate by 50 basis points. The US consumer price index in February was 0.4% m/m, the US Department of Labor said on Tuesday, which coincided with economists’ expectations. The inversion of the US public debt yield curve persisted after the publication of the statistics, but the spread between the yields of 2Y and 10Y bonds narrowed to minus 37 bp. earlier in the session – the lowest value since the end of October. The original message in English is available at the code: (Gertrude Chavez-Dreyfus featuring Sinead Carew)