U.S. Treasury yields were little changed Tuesday as investors considered the outlook for the economy, especially regarding inflation, and how it may be linked to Federal Reserve monetary policy.
The yield on the 10-year Treasury was lower by 1 basis point at 4.276%. The 2-year Treasury yield was trading more than 2 basis points higher at 5.02%.
Yields and prices have an inverted relationship. One basis point equals 0.01%.
Investor attention was focused on key inflation data due later in the week that could inform the Fed's interest rate policy.
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August consumer inflation data is expected Wednesday, followed by wholesale inflation figures for the same month on Thursday. Investors will be scanning the data for hints about whether the central bank is likely to hike interest rates again this year.
While the Fed is expected to keep rates unchanged at its September meeting next week, uncertainty about what the central bank may do beyond that recently spread after data suggested resilience in the economy, including the labor market.
That has sparked renewed concerns among investors about what higher interest rates could mean for the economy and if a recession is looming.
Money Report
Fed officials have not taken the possibility of rates going higher still off the table in recent remarks, and multiple policymakers indicated that data — especially that which concerns inflationary pressures — will play a key role in their decision-making.
The European Central Bank will announce its latest interest rate decision on Thursday.
