US Treasury yields rose slightly on Tuesday morning ahead of the release of the job-wanted data.
The yield on the benchmark 10-year Treasury note rose 1 basis point to 1.7893% at 3:20 a.m. ET. The yield on 30-year Treasury bills climbed 1 basis point to 2.1148%. Yields move inversely to prices and 1 basis point equals 0.01%.
The U.S. Bureau of Labor Statistics is due to release the December job vacancies and labor turnover survey at 10 a.m. ET.
More labor market data is expected to follow throughout the week, including the closely watched nonfarm payrolls report, due out Friday morning.
The Federal Reserve has previously indicated that it will monitor the recovery in the labor market to help inform its plans for tightening monetary policy. The Fed signaled last week that it may start raising interest rates in March to combat rising inflation.
Joost Van Leenders, senior investment strategist at Kempen, told CNBC’s “Squawk Box Europe” on Tuesday that he thinks the Fed is approaching the “peak of aggressiveness.”
“We are now discounting, I think, almost five rate hikes for this year,” he said.
Van Leenders pointed out that it was also possible that the first rate hike could be a 50 basis point increase, rather than the usual 25 basis points.
Indeed, Atlanta Fed President Raphael Bostic said in an interview with the Financial Times over the weekend that the Fed was not ruling out raising rates by half a percent if inflation remained. high.
Meanwhile, the final reading of Markit’s Manufacturing Purchasing Managers’ Index for January is due out at 9:45 a.m. ET. The ISM manufacturing PMI for January is then expected to be released at 10 a.m. ET.
No auction is scheduled for Tuesday.