Treasuries Hold Losses as Rising Gas Costs Fuel Inflation

Treasuries maintained their losses after a key consumer prices gauge rose more than economists’ estimates, supporting wagers that the Federal Reserve will raise interest rates next year to control inflation.

The declines on Tuesday left yields higher by two to three basis points across maturities, with those on 30-year securities hovering around 5%. Interest-rate swaps traders continued to price in about 70% of a quarter-point Fed rate increase by April 2027.