Bond yields rise after Bank of England says it will wrap bond buying this week


U.S. Treasury yields ticked up on Tuesday as the Bank of England’s announcement that it will wrap up emergency bond buying this week rattled markets.

The yield on the benchmark 10-year Treasury note rose about 5 basis points, trading at 3.937% at Tuesday’s market close. The yield on the 30-year Treasury bond climbed 7.4 basis points to 3.915%. Yields move inversely to prices, and a basis point is equal to 0.01%.

The yield on the 2-year Treasury, the part of the curve most sensitive to Fed policy, ticked up slightly to 4.314%.

The retreat from U.S. bonds picked up pace as commercial banks, pension funds and foreign governments step away, and the Fed increases the pace at which it plans to sell treasuries from its balance sheet. U.K. bonds are also seeing a dramatic slump as the Bank of England’s emergency move to purchase more gilts failed to calm markets.

Investors will also be watching for the Wednesday producer price report and the September consumer price index Thursday.

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