Yields on 10-year government bonds jumped to a two-year high, surpassing 1.83%

The 10-year Treasury yield jumped to its highest point in two years on Tuesday morning, surpassing 1.83%.

Benchmark yield 10-year government bond It rose 5 basis points to 1.8305% at 3:40 EST.Yield 30-year government bond It increased by 3 basis points to 2.1492%. On the other hand, the two-year rate exceeded 1% for the first time in two years and reached 1.0364%.

Yield is inversely proportional to price, and one basis point is equivalent to 0.01%.

The move coming after the US market holiday on Monday shows that investors are preparing for the possibility of a more aggressive tightening by the Federal Reserve.

last week, Federal Reserve Chairman Jerome Powell told the US Senate He expected to see a series of rate hikes this year, along with the recession of other pandemic economic support measures.

Meanwhile, Philadelphia Federated Bank Governor Patrick Harker told CNBC last week that the central bank could raise rates three to four times this year. He said inflation was “Tenacious than I thought a while ago.. “

For the data release scheduled for Tuesday, the National Association of Home Builders’ Housing Market Index for January will be released at 10 am Eastern Standard Time.

The auction will be held for $ 60 billion of 13-week invoices and $ 51 billion of 26-week invoices.

— — CNBC’s Fred Imbert contributed to this market report.