U.S. Treasury yields edged lower on Tuesday as investors braced for further data delays during the holiday-shortened business week.
As of 3:34 a.m. ET, the 10-year Treasury yield fell more than 3 basis points to 4.02%, and the 30-year Treasury yield also fell 3 basis points to 4.66%. The yield on two-year government bonds fell 2 basis points to 3.388%.
One basis point equals 0.01%, and the yield is inversely proportional to the price.
The bond market was closed on Monday for Presidents Day, and Tuesday is likely to be a quiet start to the week for investors as they await the release of multiple economic data.
This includes the weekly ADP employment change report released Tuesday morning, as well as the Empire Manufacturing Index and NAHB Housing Market Index for February.
Investors are anticipating Wednesday’s FOMC meeting minutes, parsing them for insight into previous interest rate decisions and future monetary policy.
They also expect the release of more delayed economic data this week, including housing data for November and December on Wednesday and the December personal consumption expenditures index, the Federal Reserve’s recommended measure of inflation, on Friday.
Traders are currently pricing in a 90% chance that the Fed will keep interest rates unchanged in the 350-375 range, according to the CME FedWatch tool.
