10-Year Treasury Yield Rises to Highest Level in More Than Three Years

Source: NYSE

The benchmark 10-year U.S. Treasury yield rose Monday to a level not seen in more than three years, as traders continued to assess rising inflation.

The yield on the 10-year Treasury note last rose 4 basis points to 2.851%. Earlier Monday it reached its highest level since late 2018, trading at 2.884% at one point. The yield on the 30-year Treasury bond rose 2 points to 2.937%.

Yields move inversely to prices, and 1 basis point is equal to 0.01%.

Yields began climbing in March as fear of inflation made investors move out of bonds. Rising inflation reduces the value of fixed, long-term yields, and it's also generated speculation that the U.S. Federal Reserve will boost the size of planned rate hikes.

On Wednesday, the Bureau of Labor Statistics reported that the March producer price index, which tracks prices paid by wholesalers, rose 11.2% on the previous year, its biggest gain since 2010.

That reading came a day after the latest consumer price index, which showed prices inflated 8.5% in March from the same time last year, its biggest increase since 1981. But core CPI for the month rose just 0.3%, which was below the 0.5% inflation forecast.

U.S. stocks were lower on Monday as investors braced for a week of major first-quarter earnings reports ahead.

Investors also continued to monitor developments in the Russia-Ukraine war. Ukrainian Prime Minister Denys Shmyhal said on Sunday that the remaining Ukrainian forces in the southern port of Mariupol are continuing to fight, defying a Russian demand to surrender.

— CNBC's Vicky McKeever and Sarah Min contributed to this market report.

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