US Treasuries took heat in early New York trading after Google rolled out a 10-part bond deal. That hit the long end of the yield curve and shoved the 2s10s and 5s30s spreads out to their widest levels of the session.
At the short end, a report said Fed Chair Kevin Warsh "will be prepared to raise rates at the September meeting" if inflation data due over the next few weeks comes in hot. Short-term Treasury yields pushed higher after the report.
Market snapshot
Treasury yields were up 3 to 4 basis points across the curve, with long-dated securities leading the move. The 2s10s and 5s30s curves steepened by about 1 basis point, reaching session wides. The 10-year yield rose to around 4.65%, up 3.5 basis points on the day.
Google's offering covers several maturities, from as short as 2 years to as long as 40 years.
Rate markets are still pricing in about 15 basis points of tightening for the September meeting, with total hike expectations near 33 basis points by year-end.