U.S. Treasury yields rose on Tuesday amid deepening concern around omicron lockdowns and a blow to President Joe Biden administration's spending bill that dented some U.S. economic growth forecasts.
The yield on the benchmark 10-year Treasury note rose 6.5 basis points to 1.484% at around 3:00 p.m. ET. The yield on the 30-year Treasury bond moved 4.6 basis points higher to 1.894%. Yields move inversely to prices and 1 basis point is equal to 0.01%.
The bond market moves comes as some economists lowered their growth forecasts for the United States after Democratic lawmaker Sen. Joe Manchin's refusal to approve Biden's $1.75 trillion spending plan, essentially killing it.
Also in focus is the omicron Covid variant and Biden is scheduled to give a speech on the developing situation on Tuesday. The rapidly spreading strain is now the dominant Covid strain in the U.S., representing 73% of sequenced cases.
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More European countries are considering Christmas restrictions and U.K. Prime Minister Boris Johnson said on Monday that he would tighten Covid-19 measures if needed.
Moderna on Monday provided some promising news to markets after announcing that its booster shot offers substantial protection against the omicron variant, according to preliminary data. The European Union meanwhile approved the use of Novavax's Covid-19 vaccine in adults after many delays, in positive news for the U.S. drugmaker that gives Europe its fifth vaccine against the virus.
The Federal Reserve's more hawkish turn on monetary policy also remained in focus for investors. The Fed said last week that it would accelerate the cutting down of its monthly bond purchases and signaled its intention to hike interest rates in 2022.
An auction is slated to be held Tuesday for 20-year bonds.