Odaily Planet Daily report: U.S. Treasuries came under pressure in early New York trading. Google's announcement of a 10-part bond issuance weighed on the long end of the yield curve, pushing the 2s10s and 5s30s spreads to intraday highs. On the short end, reports indicated that if upcoming inflation data over the next few weeks comes in hotter than expected, Federal Reserve Chair Kevin Warsh "will be prepared to raise rates at the September meeting."
Following the report's release, short-term U.S. Treasury yields rose. Yields across the curve increased by 3 to 4 basis points, with long-term bonds leading the move; the 2s10s and 5s30s spreads widened by about 1 basis point to their widest levels of the session. The 10-year U.S. Treasury yield rose to approximately 4.65%, up 3.5 basis points on the day. Google’s bond offering covered multiple maturities, ranging from 2 years to 40 years. The interest rate market currently prices in about 15 basis points of tightening by September, with cumulative rate hike expectations of approximately 33 basis points by year-end.