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KEY POINTS The yield on the benchmark 10-year Treasury note rose above 3.25 percent in early trading, returning to levels not seen in more than seven years.

The 10-year yield is up more than 20 basis points over the last week amid a report showed the lowest U.S. unemployment rate in 49 years and rising wages.

"We haven't seen the uptick in inflation that would normally fuel a backup in the back end of the curve, but the market may be thinking it's only a matter of time," said RBC's Craig Bishop.

Concerns surrounding rising interest rates again took center stage after U.S. government debt yields hit highs not seen in several years on Tuesday. The yield on the benchmark 10-year Treasury note rose above 3.25 percent in early trading, returning to its highest level since 2011. The yield on the 30-year Treasury bond rose above 3.43 percent, its highest level since 2014. As of the latest reading, the 10-year note yield slipped lower to 3.2 percent while the 30-year dipped to 3.36 percent at 3:06 p.m. ET. Bond yields move inversely to prices. The U.S. bond market was closed on Monday for observance of Columbus Day.

Treasurys TICKER COMPANY YIELD CHANGE %CHANGE US3M U.S. 3 Month Treasury 0.099% UNCH UNCH US1Y U.S. 1 Year Treasury 0.122% +0.003 0.00% US2Y U.S. 2 Year Treasury 0.137% -0.002 0.00% US5Y U.S. 5 Year Treasury 0.277% -0.002 0.00% US10Y U.S. 10 Year Treasury 0.668% -0.008 0.00% US30Y U.S. 30 Year Treasury 1.405% -0.02 0.00%

Bond experts have pointed to the robust economic data, signs of inflation and a glut of debt issuance as a reason for the rising rates. The 10-year Treasury yield has climbed more than 20 basis points over the last seven days amid a report Friday which showed the lowest unemployment rate in 49 years, along with rising wages. The report adds to the now-widespread view that the labor market is near or beyond full employment and shows wages are starting to accelerate higher. This could be a worry for the Federal Reserve trying to keep a lid on inflation. Still, some explicit reads on inflation, such as the personal consumption expenditures (PCE) price index, have yet to take off as quickly as some central bankers expected.