U.S. Treasury yields jumped on Tuesday, amid fears that an import ban on Russian oil could increase inflationary pressures.
The yield on the benchmark 10-year Treasury note surged 9 basis points to 1.847% at 4:00 p.m. ET. The yield on the 30-year Treasury bond moved 8 basis points higher to 2.231%. Yields move inversely to prices and 1 basis point is equal to 0.01%.
Russia's invasion of Ukraine had already been driving up oil and gas prices, with concerns about supply disruption. The U.S. is expected to announce as early as Tuesday that it will ban imports of Russian oil, a move that would cut about 8% of America's annual supply.
The possibility of an import ban on Russian oil has added to these fears, and saw U.S. crude hitting a 13-year high of $130 on Sunday.
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Investors are worried that an import ban could have a stagflationary effect, where the economy slows but inflation moves higher.
Investors will therefore be poring over inflation data due out later this week, with February's consumer price index slated for release on Thursday.
An auction is scheduled to be held on Tuesday for $48 billion of 3-year notes.