U.S. Treasury yields declined Tuesday as investors considered economic data and the state of the economy.
At 6:37 a.m. ET, the yield on the 10-year Treasury yield was down by over 2 basis points at 4.276%. The 2-year Treasury yield was last trading at 4.693% after dipping by more than 2 basis points.
Yields and prices move in opposite directions. One basis point is equivalent to 0.01%.
Investors considered the state of the economy as they looked to data for hints about how it is faring amid higher interest rates and persistent inflation.
Data released on Monday showed that new home sales increased by 1.5% in January, less than the 2.4% estimate, as mortgage rates are still elevated.
Several further key economic reports are slated for the week, including updated gross domestic product figures on Wednesday and durable goods order for January on Tuesday. Also on Tuesday, the S&P/Case-Shiller home price report and fresh consumer confidence data are expected.
Some of this week’s data could also provide hints about what the path ahead for Federal Reserve interest rates could look like. This includes the personal consumption expenditures price index, which is a key inflation measure for the Fed.
Fed officials have repeatedly said their decision-making would be data-led, and are looking for further evidence that inflation is moving toward the 2% target. The most recent inflation data for January, however, came in hotter than expected, suggesting to investors that inflation could be more persistent than anticipated.
Market expectations for the first rate cut have moved from as early as March to June in recent weeks, following comments from Fed speakers and economic data releases.
This story originally appeared on CNBC
