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Treasury yields rise as strong earnings lift risk appetite

Yun Li
  • Investors are taking a cautious approach as the Federal Reserve sounds more dovish.
  • Speaking to CNBC on Monday, Chicago Federal Reserve President Charles Evans said that he'd be comfortable leaving interest rates untouched until autumn 2020.

U.S. government debt prices fell on Tuesday as solid corporate earnings results lifted investor risk sentiment. 

The yield on the benchmark 10-year Treasury note rose nearly 1% to about 2.5764%, its highest level since March 20. The yield on the 30-year Treasury bond rose 0.75% to 2.9872%. Bond yields move inversely to prices.

Investors are taking a cautious approach as the Federal Reserve sounds more dovish. Speaking to CNBC on Monday, Chicago Federal Reserve President Charles Evans said that he'd be comfortable leaving interest rates untouched until autumn 2020 .

Traders will also monitor a speech by the Dallas Fed President Robert Kaplan at 2 p.m. ET.

In terms of trade, the U.S. and Japan have started negotiations in Washington on Monday, as President Trump seeks to reduce Japan's deficit with the U.S. Elsewhere, China and U.S. officials are reportedly close to striking an agreement.

In terms of data, there will be Biz leader's survey at 8.30 a.m. ET, industrial production and capacity utilization due at 9.15 a.m. ET; and the NAHB survey will be out at 10 a.m. ET.

There are no Treasury auctions planned.

— CNBC's Silvia Amaro contributed to this report.



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