Benchmark 10-year U.S. Treasury yields rose on Tuesday, thereby erasing some of their previous losses as investor confidence in the banking sector continues to be restored.
Optimism has improved surrounding the U.S. economy’s ability to withstand the recent banking sector instability which started with the collapse of California’s tech company-focused Silicon Valley Bank and the New York City-based Signature Bank almost two weeks ago.
10-year U.S. Treasury yields rose by two basis points to 3.553% on Tuesday, thereby continuing their recovery after hitting a six-month low of 3.285% on Friday. They still remain below the 15-year high of 4.338% obtained on October 21 last year.
Two-year yields increased by five basis points to 4.010%, up from a six-month low of 3.555% on Friday. They remain below the almost 16-year high of 5.084% that was reached on March 8.
The Treasury Department is set to sell $43 billion in five-year notes on Tuesday along with an additional $35 billion in seven-year notes on Wednesday.