Treasury Yields Rise Amid Moderate Demand In Bonds Auction

Treasury yields rise after today’s 10-year bond auction, which Spartan’s Peter Cardillo says had only “moderate” demand. The 10-year yield is now higher than yesterday’s settle, at 4.035%, after spending the early session in negative territory. Markets expect increasing supply of government debt in the near future to finance growing federal spending, which could weigh on bond prices and boost yields. Investors are also expecting tomorrow’s consumer price data to confirm a slowdown in inflation. Economists surveyed by The Wall Street Journal forecast December core annual CPI at 3.8%, versus November’s 4%. Weekly jobless claims are expected to accelerate to 210,000 from 202,000.