The U.S. 10-year Treasury yield was down slightly in afternoon trading on Tuesday after hitting a 14-month high earlier within the session.
The yield on the benchmark 10-year Treasury note inched lower to 1.714% in afternoon trading. It hit 1.776% earlier within the session, the primary time trading around that level in January 2020.
The yield on the 30-year Treasury bond fell more substantially to 2.374%. Yields move inversely to prices.
The move in yields comes each day before President Joe Biden revealing details of his infrastructure plan. The recovery package is predicted to incorporate up to $3 trillion in spending across a swathe of sectors in an attempt to bolster the U.S. economy.
HSBC strategists said during a note published Monday that “stimulus and any infrastructure plan are likely to convince be a sugar rush for the economy given the secular headwinds.”
The move higher in yields to start out the year comes amid increasing talk about inflation, as the U.S. economy starts to bounce back. There were already concerns that the $1.9 trillion stimulus spending package signed earlier this month could stoke inflation amid the economic recovery from the pandemic.