Treasury yields are rising as investors weigh the possibility of higher federal interest rates

US Treasury yields rose on Wednesday, as traders assessed the possibility of higher federal interest rates.

The yield on the benchmark 10-year Treasury note rose about 1.3 basis points at 3.349% near 2 a.m. ET, while the yield on the 30-year Treasury note rose half a basis point to 3.599%. Yields move inversely to prices.

Wednesday will also see an auction of 17-week treasury bills worth $36 billion.

Jobs data released on Tuesday showed that job vacancies fell below 10 million in February for the first time in nearly two years, weighing on Treasury yields as investors consider whether the information might deter the Federal Reserve from further rate hikes.

Future monetary policy moves remain in focus, with the Federal Reserve continuing to tackle inflation and the aftermath of bank meltdowns that have roiled bond markets in recent weeks.

The Fed is due to meet in early May, when it is likely to hike the policy rate by another 25 basis points, according to CME Group’s FedWatch tool.

Loretta Mester, President of the Federal Reserve Bank of Cleveland, said: letter In New York Tuesday that the central bank needs to raise interest rates to counter inflation. No details were provided.

“Determining how much higher the federal funds rate will need to go from here and for how long policy remains constrained will depend on how much inflation and inflation expectations come down,” Mester said, adding that it will depend on how much demand slows, supply challenges resolve, and price pressures ease. .

Investors are also looking forward to the batch of non-farm payrolls data, which is due for release on Friday.