US

Treasury yields slide as economic reopening continues

U.S. Treasury yields fell on Tuesday morning, continuing recent weakness even as the nation’s economy shows signs of recovery and rising inflation.

The yield on the benchmark 10-year Treasury note slipped to 1.584% at around 8:20a.m. ET. The yield on the 30-year Treasury bond fell slightly to 2.261%. Yields move inversely to prices.

Tuesday’s move marks the third straight trading day of declines for yields, which have struggled to regain their highs from earlier this year. Yields rose aggressively at the start of 2021, and peaked above 1.7% in March.

However, despite signs of an economic recovery and inflation, Federal Reserve officials have reiterated their commitment to holding down their benchmark interest rate for the foreseeable future.

Florida Gov. Ron DeSantis signed an executive order on Monday that immediately suspends the state’s remaining Covid-19 public health restrictions. Meanwhile, New York, New Jersey and Connecticut will start to lift capacity restrictions on May 19.

March factory orders data is due out at 10 a.m. ET Tuesday, along with May’s IBD/TIPP economic optimism index.

An auction will be held Tuesday for $40 billion of 42-day bills.

— CNBC’s Lauren Thomas contributed to this report.

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