US Treasury yields rose on Tuesday after Japan unexpectedly raised its cap on 10-year Japanese government bond yields, sparking a sell-off in global long-duration bond markets.
The yield on the benchmark 10-year treasury note was up by 7 basis points at 3.7528%, while the yield on the 30-year Treasury bond rose by more than 9 base points to 3.7145%. Yields move inversely to prices.
The Bank of Japan caught markets off guard by tweaking its yield controls to allow the yield on its 10-year JGB to move 0.5% either side of its 0% target, up from 0.25% previously, in a move aimed at cushioning the effects of protracted monetary stimulus measures.
The move prompted the Japanese yen and bond yields around the world to rise suddenly, while stocks retreated in Asia-Pacific.
There are no major economic data releases or US Treasury auctions slated for Tuesday.