Treasury yields are at the highs of the day as the market focuses on the Bank of Japan decision later and the FOMC decision on Wednesday.
The market is anxious that the BOJ slowing its pace of bond buying will put upward pressure on global yields.
US 10 year yields daily
Another factor pressing yields higher is energy. WTI crude oil on Friday closed at the highs of the year and it’s ticked another 25 cents higher today after Iraq pledged lower exports in the months ahead.
The climb in yields is helping to lift the US dollar as it pares earlier losses.
Technically, the February high of 4.354% is a key level to watch.