 "US yields hit multi-month peaks as solid data trims rate cut bets")
Most US Treasury yields rose to multi-month highs on Tuesday, as solid economic data continued to add to expectations that the Federal Reserve could delay cutting interest rates to the July meeting or later.
The benchmark 10-year yield climbed to 4.405% , its strongest level since late November. It was last up 5 basis points (bps) at 4.379%. The US five-year, seven year, and 30-year yields also hit their highest since late November.
On the shorter end of the curve, US two-year yields slipped 1.5 bps to 4.703%, after earlier touching a fresh two-week high of 4.733%.
"The pendulum of sentiment may be shifting towards the hawkish direction, but there is still a lot of room for things to change for the next couple of weeks," said Vail Hartman, US rates strategist at BMO in New York.
"We have seen the market walk back the June rate cut closer to a coin toss at this point," he added.
Treasury yields extended gains after data showed US job openings held steady at higher levels in February, while the number of people quitting their jobs rose marginally. Job openings, a measure of labor demand, edged up 8,000 to 8.756 million on the last day of February, according to the monthly Job Openings and Labor Turnover Survey, or JOLTS report.
The number of workers resigning from their jobs, likely for greener pastures, increased 38,000 to 3.484 million in February.
The number of workers resigning from their jobs, likely for greener pastures, increased 38,000 to 3.484 million in February.
A separate report showed new orders for US-manufactured goods grew more than expected in February, boosted by demand for machinery and commercial aircraft. Factory orders increased 1.4% after dropping 3.8% in January, data showed, with economists polled by Reuters forecasting orders to rebound 1.0%. They rose 1.0% year-on-year in February.
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Tuesday's reports followed a US manufacturing survey on Monday which showed that the sector grew for the first time in 1-1/2 years in March, as production rebounded sharply and new orders increased.
Following Tuesday's data, the US rate futures market has priced in a 59% chance of a rate cut in June, down from about 70% a week ago, according to the CME's FedWatch tool.
The market has also pared back the number of rate cuts to about two this year, from three a few weeks ago, according to LSEG's rate probability app.