U.S. Treasury yields were higher on Tuesday as investors looked ahead to the latest Federal Reserve meeting minutes and key economic data due this week.
At 4:17 a.m. ET, the yield on the 10-year Treasury was up by nearly four basis points to 4.302%. The 2-year Treasury yield was last at 4.278% after rising by more than two basis points.
Yields and prices have an inverted relationship. One basis point equals 0.01%.
Investors considered the state of the economy as they looked to upcoming data and weighed the outlook for monetary policy as the Federal Reserve's latest meeting minutes are set to be released.
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The minutes are due Tuesday and, in a week that is quiet when it comes to comments from Fed officials, investors will be scanning them closely for more hints about what could be next for interest rates. The Fed cut rates at its last two meetings, with one remaining this year on Dec. 17-18.
CME Group's FedWatch tool last showed that traders were pricing in an around 56% chance of rates being cut again then, with a roughly 44% chance of rates staying unchanged.
Also on Tuesday, consumer confidence insights for November and October's new home sales data is expected.
Money Report
Key inflation data is set to be published as the week continues, with the personal consumption expenditure price index for October due Wednesday. The PCE is the Fed's favored inflation gauge and could therefore inform its monetary policy decisions.
Investors also continued to assess President-elect Donald Trump's choice of hedge fund executive Scott Bessent as Treasury secretary. The pick has widely soothed any nervousness and concerns about the future of the U.S. economy as they expect Bessent to prioritize economic and market stability.
