U.S. Treasury yields were higher on Tuesday as market participants awaited fresh economic data and further comments from Federal Reserve officials.
The yield on the 10-year Treasury was more than five points higher at 3.791%, while the 2-year Treasury yield rose nearly 3 basis points to trade at 3.605%.
Yields and prices move in opposite directions. One basis point is equivalent to 0.01%.
The 10-year Treasury yield ended last week almost 8 basis points higher after the U.S. central bank lowered interest rates by 50 basis points on Wednesday. Markets had raised the probability of the outsized move ahead of the meeting, but the announcement came as a surprise to many economists.
Market participants have questioned whether the move was good news for the world’s largest economy, or a sign it is weakening more severely than previously thought.
Minneapolis Federal Reserve President Neel Kashkari on Monday said that he expects policymakers to slow the pace of rate cuts after last week’s half-point reduction.
“I think after 50 basis points, we’re still in a net tight position,” Kashkari said in a CNBC “Squawk Box” interview. “So I was comfortable taking a larger first step, and then as we go forward, I expect, on balance, we will probably take smaller steps unless the data changes materially.”
Investors are set to closely monitor further comments from Fed officials. Fed Governor Michelle Bowman and Fed Governor Adriana Kugler are both scheduled to deliver remarks on the U.S. economic outlook at separate events on Tuesday.
On the data front, home prices for July will be released at around 9 a.m. ET on Tuesday.
Consumer confidence data for September and Richmond Fed surveys for September are both scheduled to be released at 10 a.m. ET.
— CNBC’s Jeff Cox, Brian Evans & Jenni Reid contributed to this report.