Bond yields were on the rise again as Wall Street kicked off another trading week.
Early Monday, Feb. 12, the yield on the 10-year Treasury note surged as high as 2.902%, tallying a new four-year record. Most recently, the 10-year note was yielding about 2.862% as it came off highs. U.S. stocks held on to gains despite the jump in yields.
Rising bond yields come amid growing and sustained concerns over inflation. Investors are eagerly awaiting consumer pricing data expected Wednesday, Feb. 14, but remain cautious that inflation could increase faster than expected. FactSet analysts are looking for a 0.2% uptick in the Consumer Price Index, down slightly from last month’s 0.3% increase.
Wall Street’s inflation concerns spread from the bond market to the stock market last week. Stocks registered one of their worst weeks in years. The Dow Jones Industrial Average fell last week by more than 5%.