Bonds

Treasury yields rebound, 10-year Treasury above 1.2%

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U.S. Treasury yields rose on Tuesday, with the 10-year rate hovering above the 1.2% mark, rebounding from a fall in the previous session amid Covid-19 variant fears.

The yield on the benchmark 10-year Treasury note rose 3 basis points to 1.215% at around 4:00 p.m. ET. The yield on the 30-year Treasury bond rose 5 basis points to 1.87%. Yields move inversely to prices and 1 basis point equals 0.01 percentage points.

Treasurys

The 10-year Treasury yield fell to a five-month low of 1.18% on Monday, as investors grew concerned about the spread of Covid variants and the effect of inflationary pressures on the economic recovery.

Covid cases are rising in the U.S., with the spread of the delta variant largely among the unvaccinated. The U.S. is averaging about 26,000 daily cases in the last seven days, more than double the average from a month ago, according to CDC data

An auction will be held on Tuesday for $35 billion worth of 42-day bills.