U.S. Treasury yields rose on Tuesday after Japan unexpectedly raised its cap on 10-year Japanese government bond yields, sparking a sell-off in global long-duration bond markets.
The yield on the benchmark 10-year Treasury note was up by 10 basis points at 3.69%, while the yield on the 30-year Treasury bond rose by more than 11 basis points to 3.74%. Yields move inversely to prices.
The Bank of Japan caught markets off guard by tweaking its yield controls to allow the yield on its 10-year JGB to move 0.5% either side of its 0% target, up from 0.25% previously, in a move aimed at cushioning the effects of protracted monetary stimulus measures.
The move prompted the Japanese yen and bond yields around the world to rise suddenly, while stocks in Asia-Pacific retreated.
There are no major economic data releases or U.S. Treasury auctions slated for Tuesday.