U.S. Treasury yields climbed early on Wednesday, ahead of the release of inflation data for February later in the morning.
February’s consumer price index is due out at 8:30 a.m. ET on Wednesday. Economists expect it to have risen 0.4% in February, or up 1.7% from a year ago.
However, ING senior rates strategist Antoine Bouvet told CNBC’s “Street Signs Europe” on Wednesday that he didn’t think this inflation reading would be the “big one.”
He said ING expected big readings to only occur toward the end of the second quarter, “potentially peaking around 3.5% and above.”
ING had forecast average inflation to reach 2.9% this year and stay at that level next year, expecting the decline to be “very slow.”
Concerns about higher inflation have been driving bond yields higher recently.
The $1.9 trillion fiscal stimulus package is expected to add juice to the economy. That has raised inflation concerns, and the market could be spooked by a CPI report that is any hotter than expected.
House Democrats aim to pass the stimulus bill on Wednesday, with President Joe Biden expected to sign it before key unemployment programs expire on Sunday.
Auctions will be held Wednesday for $30 billion of 119-day bills and $38 billion of 9-year 11-month notes.
— CNBC’s Patti Domm contributed to this report.