10-Year Yield Rises 6bps to 3.85%, Two-Year Hits 4.31%, Tradeweb Volumes Jump 12%
U.S. 10-year Treasury yield climbed 6 basis points to 3.85% and the 2-year note added 5 basis points to 4.31% Tuesday ahead of January consumer inflation figures, driving a 12% surge in trading volume on fixed-income platforms like Tradeweb. Rising yields increased bid-ask spreads, boosting Tradeweb’s transaction revenue.
1. Treasury Yields Spike Ahead of CPI
U.S. benchmark 10-year Treasury yield rose 6 basis points to 3.85% Tuesday, while the 2-year note climbed 5 basis points to 4.31%, as investors positioned for January inflation data due today.
2. Tradeweb Sees Volume and Revenue Lift
Higher volatility pushed fixed-income trading volume on platforms such as Tradeweb up 12% compared with the prior session, translating into wider bid-ask spreads and increased transaction revenue for the electronic trading venue.
3. Inflation Outlook and Market Impact
Market participants expect January CPI to show a 0.3% monthly rise, and traders have adjusted rate-hike odds accordingly; any upside surprise could further steepen the yield curve and sustain elevated trading activity.