U.S. Treasury yields fell Tuesday, as investors looked ahead to fresh inflation insights due later this week — which could provide clues about the path ahead for monetary policy.
At 2 p.m. ET, the yield on the 10-year Treasury was 6 basis points lower at 4.362%, easing from multimonth highs. The 2-year Treasury yield was last at 4.738% after dipping close more than 5 basis points.
Yields and prices have an inverted relationship. One basis point equals 0.01%.
The consumer price index and producer price index are due this week. Economists surveyed by Dow Jones are anticipating the CPI to have risen by 0.3% on a monthly basis. A reading above expectations could add to concerns about rates staying elevated for longer.
Recent data and comments from Federal Reserve officials have cast doubt on when and how often rates will be cut this year, and even raised questions about whether rates will be cut at all.
That comes on the back of a stronger-than-expected jobs report that reflected resilience in the labor market, and comments from Minneapolis Fed President Neel Kashkari, who suggested that depending on how the economy develops, there could be zero rate cuts this year.
