Treasury 10-Year Yield Hits 3% for First Time Since 2014

Comex Gold

Weekly June Comex Gold

The yield rose as high as 2.95 percent in February, before retreating into a range for the past two months.

The U.S. 10-year Treasury yield rose to 3 percent on Tuesday for the first time in more than four years as investors reduce their U.S. bond holdings on worries about rising inflation and growing government debt supply. "They will continue to press higher through the end of the year", said Bill Merz, head of fixed income research with U.S. Bank Wealth Management in Minneapolis. The Dow Jones industrial average plunged as much as 619 points as investors feared that rising oil prices and other costs will slow down growth in company profits.

Spot gold was up 0.1 percent at $1,325.81 an ounce at 1142 GMT, while USA gold futures for June delivery were up $3.70 an ounce at $1,327.70. Looking at gold today, the precious metal is enjoying a small rebound as US Treasury yields fall and the dollar trades sideways. "People are concerned that inflation is going to stay sticky, and reiterating the idea that the Federal Reserve will raise rates six times over the next two years".

And in oil markets, both main contracts built on Monday's gains to hold at peaks not seen since late 2014, with ongoing unrest between Saudi Arabia and Yemen rebels providing support.

WALL STREET: Shares yielded early gains to end almost unchanged.

MERGER MONDAY: Utility Vectren gained 5.2 percent to $68.96 after it accepted an offer from rival CenterPoint Energy worth nearly $6 billion, or $72 a share. It reported strong digital ad sales and an accounting adjustment.

For example, former Fed Chair Janet Yellen has asserted that the US economy will be a 1 percent real rate economy in the medium term, and the day that is the case then a 3 percent neutral rate will come immediately in play. Other big technology companies also fell, as Facebook dropped 3.7 percent to $159.69 and Microsoft skidded 2.3 percent to $93.12.

While bond yields in the Eurozone and United Kingdom also rose on Monday, the concern among investors is that inflation is rising without an increase in the pace of economic growth.

But low interest rates have helped juice the economic recovery, so a return to higher rates could signal tougher times ahead.

ENERGY: Benchmark U.S. crude oil gained 18 cents to $68.82 a barrel.

CURRENCIES: The dollar rose to 108.24 yen from 107.60 yen. Wholesale gasoline rose 1.3 percent to $2.12 a gallon. Brent crude, used to price worldwide oils, gained 0.9 percent to $74.71 per barrel in London. Brent crude, used to price global oils, gained 22 cents to $74.93 per barrel in London.

Platinum was 0.5 percent lower at $916.50 an ounce, while silver was up 0.7 percent at $16.64 an ounce after falling over 3 percent in the previous session.

Japan's benchmark Nikkei 225 gained 0.7 per cent in morning trading to 22,236.53, helped by the weaker yen. The Kospi in South Korea lost 0.4 percent and Hong Kong's Hang Seng added 1.4 percent.

Global shares advance as US bond yields push dollar higher
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