The yield on the 10-year government benchmark bond increased by 3 basis points to 2.8205% at 4:15 a.m. ET. The yield on the 30-year government bond moved by 1 basis point higher to 2.8353%. Yields are inversely proportional to the values ​​and 1 basis point equals 0.01%. The 10-year rate hike comes ahead of key data on inflation. The March consumer price index is expected to be released at 8:30 a.m. ET on Tuesday. Figures are expected to show an annual increase of 8.4% in prices – the highest level since December 1981 – according to economists polled by Dow Jones, with rising food costs, rents and energy prices expected. to be the main contributors to the rise. The March producer price index is expected to be released at 8:30 a.m. ET on Wednesday. These measurements of inflation are crucial in determining how aggressive the US Federal Reserve will be in tightening monetary policy. Rising prices and the more aggressive Fed have sparked investor fears that a recession could be on the horizon, as seen in the reversal of bond yields. Investors traded short-term bonds in favor of longer-term debt, signaling concerns about the short-term strength of the economy, although interest rates had returned on Tuesday.

Nigel Bolton, co-chief Investment Officer at BlackRock Fundamental Equities, told CNBC’s Squawk Box Europe on Tuesday that growing market volatility reflected concerns about central banks making “policy mistakes” and that it was heading for a global recession. lasts 12 to 18 months “. However, Bolton said he did not believe the recession was “definitely on paper”. Fed Governor Lael Brainard is scheduled to address the Wall Street Journal Jobs summit at 12:10 p.m. ET on Tuesday. In addition to inflation data, the April IBD / TIPP economic optimism index is expected to be released at 10 am. ET on Tuesday. An auction is scheduled for Tuesday for 10-year $ 34 billion bills. – Samantha Subin contributed to this market report.