Live News: Aluminum hits 13-year high, adding to inflationary pressure

Global government bonds remained under pressure on Tuesday as traders weighed the prospect of monetary policy tightening by central banks to slow soaring inflation.

The yield on the 10-year US Treasury note, which underpins the cost of debt around the world, rose 0.04 percentage points to 1.96%.

The two-year Treasury yield, which closely tracks interest rate expectations, rose 0.03 percentage points to 1.32%. The dollar index, which measures the strength of the greenback against major currencies, rose 0.2%.

The Italian 10-year bond yield rose 0.07 percentage point to 1.88%, although the equivalent Greek yield fell 0.06 percentage point to 2.31%.

The yield on the 10-year German Bund, the barometer of broader eurozone borrowing costs which until last month had remained below zero since May 2019, rose 0.04 percentage points to reach 0.26%.

Meanwhile, the UK 10-year gilt yield climbed 0.09 percentage points to 1.68%.

In equity markets, the US S&P 500 index traded flat in early trading in New York on Tuesday. The tech-focused Nasdaq Composite swung between small gains and small losses, after disappointing profits at drugmaker Pfizer and SoftBank scrapped its $66 billion sale of the UK-based chipmaker Arm Holdings.

Europe’s regional Stoxx 600 index traded flat, having fallen along with Wall Street markets this year.

In Asia, Hong Kong’s Hang Seng index fell 1% and Tokyo’s Nikkei 225 closed up 0.1%.

Brent, the oil benchmark, fell 1.8% to $90.97 a barrel, but remained near its highest level since 2014.

Wiley C. Thompson