U.S. Treasury yields were higher Tuesday as trading resumed after Monday’s Juneteenth holiday and investors looked to remarks from Federal Reserve officials for hints about upcoming monetary policy moves.
At 5:31 a.m. ET, the 10-year Treasury was trading more than 2 basis points higher at 3.794%. The 2-year Treasury yield was last up marginally at 4.727%.
Yield and prices have an inverted relationship and one basis point equals 0.01%.
Investors awaited a slew of Fed speaker comments slated for this week which could provide fresh details about the outlook for interest rates.
At its latest monetary policy meeting last week, the central bank left rates unchanged for the first time since March 2022. However, in guidance issued alongside the rate decision, Fed officials indicated that they are expecting to hike rates twice more this year, by 25 basis points each time.
They also expect interest rates to be higher than previously anticipated throughout 2024 and 2025.
St. Louis Fed President Jim Bullard and New York President John Williams are expected to speak on Tuesday, followed by other policymakers throughout the week. Fed Chairman Jerome Powell is due to testify before Congress on Wednesday and Thursday.
Investors will also be scanning their comments for clues about what could be next for the U.S. economy as concerns about how it could be affected by elevated rates continue.
On the data front, May’s building permit and housing starts data is expected Tuesday.
