US Treasury yields fall amid lower risk appetite By Reuters

Written by Karen Brittle

NEW YORK (Reuters) – US bond yields fell from their highest levels in more than three weeks on Tuesday as lower risk appetite boosted demand for safe-haven debt and before the US Treasury sold three-year bonds.

* Wall Street’s major indices open lower after trimming quarterly profit margin forecasts targeting Corp (NYSE:) raised fears of slowing demand in an inflationary environment and weighed on stocks in the retail sector.

* He said expectations that the Federal Reserve will raise interest rates next week by 50 basis points and set the tone in favor of more monetary policy tightening to deal with rising inflation is also dampening risk appetite. Tom de Galoma, managing director of Seaport Global Holdings in New York.

* The yield on the 10-year note fell four basis points to 2.996%, after hitting 3.064% overnight, the highest since May 11. The yield on the two-year debt fell two basis points to 2.710% after reaching 2.759%.

Yields rose overnight as investors prepared to issue new bonds this week.

* The Treasury will sell $44 billion in three-year bonds on Tuesday, the first part of this week’s $96 billion auction. The government will also issue $33 billion in 10-year bonds on Wednesday and $19 billion in 30-year bonds on Thursday.

* The three-year bond yield fell by four basis points to 2.903%.

* The market expects inflation data to be released on Friday to show consumer prices rose 0.7% in May, up from 0.3% in April, and annual inflation to remain unchanged at 8.3%, according to the median estimate of economists polled by Reuters. .

Persistently high inflation may raise bets that the Federal Reserve will remain aggressive in the coming months as it tries to bring down rates that are rising at the fastest pace in 40 years.

(Edited in Spanish by Javier Lira)