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Trump told 14 nations they face higher tariffs

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Treasury to sell $58 bln 3-year notes on Tuesday

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Global bond selloff pulls US yields higher

By Karen Brettell

July 8 (Reuters) - U.S. Treasury yields rose on Tuesday,

a day after President Donald Trump announced tariffs on multiple

countries and as investors awaited Treasury's sales of $119

billion in coupon-bearing debt this week.

Trump told 14 nations, from powerhouse suppliers such as Japan

and South Korea to minor trade players, that they will face

sharply higher tariffs from a new deadline of August 1.

Investors are concerned that higher tariffs will increase

inflation and slow economic growth, though so far price

pressures have remained relatively contained.

The U.S. Congress also last week passed the Trump-backed

"Big Beautiful Bill," which will add trillions of debt over the

coming decade and raises the debt ceiling by $5 trillion.

"There's plenty of concern about what the one 'Big Beautiful

Bill' means and if tariffs are going to produce inflation that

we really haven't seen yet," said Zachary Griffiths, head of IG

and macro strategy at CreditSights in Charlotte, North Carolina.

"A lot is going to hinge on this CPI print."

The U.S. Labor Department is due to release the Consumer

Price Index for June on July 15.

Longer-dated debt yields increased at a faster pace than

shorter-dated ones on Tuesday before auctions of 10-year and

30-year debt this week.

The Treasury will sell $58 billion in three-year notes on

Tuesday, $39 billion in 10-year notes on Wednesday and $22

billion in 30-year bonds on Thursday.

"To the extent we've seen the curve steepen over the past

couple of days, maybe that adds to the likelihood of a decent

bid for tens and thirties," Griffiths said.

Demand for longer-dated debt may also be supported after

Treasury Secretary Scott Bessent last week said he does not plan

to increase the auction sizes of the debt at current interest

rates.

The yield on benchmark U.S. 10-year notes was

last up 3.6 basis points on the day at 4.431%, the highest level

since June 20.

The 30-year bond yield rose 3.8 basis points to

4.968% and reached 4.974%, the highest level since June 9.

The interest rate sensitive 2-year note yield

rose 1 basis point to 3.913% and got as high as 3.918%, the

highest level since June 23.

The yield curve between two-year and 10-year notes steepened

by around three basis points to 51 basis points.

A global bond selloff including Japanese and German bonds also

helped to pull U.S. yields higher on Tuesday.

Yields have also increased this week after a

stronger-than-expected jobs report for June on Thursday led

traders to pare bets on how many times the Federal Reserve is

likely to cut rates this year.