U.S. 10-year Treasury yield climbs to 4-year high as investors panic over hopes of faster-than-expected inflation numbers

The U.S. 10-year Treasury yield jumped to 4-year high Monday even as global stock prices rebounded and as concerns over inflation continued. Traders are waiting for new consumer price data coming Wednesday, but fears that inflation numbers might creep up faster-than-expected were affecting the bond market Monday.

The yield on the benchmark 10-year Treasuries jumped 5 basis points to 2.88 percent, the super-long 30-year bond yields surged 4 basis points to 3.17 percent and the yield on the short-term 2-year traded nearly 5-1/2 basis points higher at 2.11 percent by 11:15GMT.

The key day for global markets this week will be Wednesday when the US reports January CPI and retail sales. The former will be of particular interest to see whether the firmer momentum in core inflation seen in the closing months of last year has been sustained, especially in light of the current nervousness in bond markets. Headline retail sales will be weighed down by weaker auto sales, but core spending could well advance on the 0.4 percent m/m gain seen in December.

A busy Thursday will see the release of the latest PPI and IP reports, the NAHB housing index, and New York and Philadelphia Fed manufacturing surveys. The week will close with the preliminary February University of Michigan consumer survey and January housing starts/permits data.

Meanwhile, the S&P 500 Futures jumped 1.15 percent to 2,648.00 by 11:15GMT, while at 11:00GMT, the FxWirePro's Hourly Dollar Strength Index remained neutral at -37.37 (a reading above +75 indicates a bullish trend, while that below -75 a bearish trend). For more details, visit http://www.fxwirepro.com/currencyindex

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