10-year Treasury yield hits 1.67%, its highest point since mid-May

10-year Treasury yield hits 1.67%, its highest point since mid-May

The 10-year U.S. Treasury yield hit 1.67% late on Tuesday night, its highest point since mid-May, as strong corporate earnings boosted economic sentiment.

The yield on the benchmark 10-year Treasury note was at 1.648% at 4 a.m. ET on Wednesday morning. The yield on the 30-year Treasury bond was at 2.102%. Yields move inversely to prices.

The 10-year rate has rebounded, having hit a low of around 1.51% during the last week.

The S&P 500 saw its fifth straight day of gains on Tuesday, amid the upbeat earnings reports, though stock futures were flat overnight.

Strong earnings will have strengthened hopes of a continued economic recovery in the U.S., alleviating some concerns that this could be thrown off course by Covid-19 cases and inflation. Federal Reserve officials have indicated that the central bank is nearing its economic goals and would soon start to normalize monetary policy by tapering its asset purchases.

There are no major economic data releases due out on Wednesday.

Fed Governor Randal Quarles is set to discuss the economic outlook at the Milken Institute Global Conference on at 1 p.m. ET on Wednesday.

Auctions are scheduled to be held on Wednesday for $60 billion of 27-day bills, $40 billion of 119-day bills and $24 billion of 20-year bonds.

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