U.S. Treasury yields traded flat on Tuesday as investors awaited economic data releases and earnings reports that could provide hints about the state of the U.S. economy.
The yield on the benchmark 10-year Treasury rose about a basis point to 3.543%. The 2-year Treasury yield was last trading at around 4.251% after rising by a basis point.
Yields and prices have an inverted relationship and one basis point is equivalent to 0.01%.
Investors looked to economic data and earnings releases slated for this week for hints about how the U.S. economy is faring as pressures from high inflation and elevated interest rates continue.
S&P Global’s flash purchasing managers’ index report, which indicates whether economic activity in the manufacturing and services sectors is slowing or contracting, is expected on Tuesday. Further data points, including the personal consumption expenditure price index which is one of the Fed’s favored inflation gauges, are due later in the week.
Many investors are concerned that the pace of rate hikes implemented by the Federal Reserve in an effort to curb persistent inflation could drag the U.S economy into a recession.
Uncertainty about whether the central bank will announce the second 50 basis point increase in a row, or slow the pace to a 25 basis point hike at its next meeting on Jan. 31 and Feb. 1 has spread in recent weeks.
