investors weigh Fed rate policy path
Yields and prices move in opposite directions and one basis point is equivalent to 0.01%.
At 5:35 a.m. ET, the 10-year Treasury was trading over 4 basis points lower at 3.461%. The yield on the 2-year Treasury was down by 3 basis points at 3.973%.
U.S. Treasury yields declined Tuesday as investors assessed what could be next for Federal Reserve interest rates following a slew of comments from central bank officials.
Investors looked to comments from Fed officials and economic data as they weighed what could be next for interest rate policy and whether the U.S. economy is likely to contract.
April's retail sales report is expected Tuesday, as are remarks from various Fed Presidents, including New York's John Williams, Dallas' Lorie Logan, Cleveland's Loretta Mester and Atlanta's Raphael Bostic.
Bostic told CNBC's "Squawk Box" on Monday that he does not believe inflation will decline quickly and rate cuts are therefore unlikely to be announced this year, regardless of a looming recession. He also noted that rates may even go higher still.
Minneapolis Fed President Neel Kashkari also called for caution in remarks at the Minnesota Transportation Conference and Expo, suggesting that the Fed's fight against inflation was not yet over.
Meanwhile, Chicago Fed President Austan Goolsbee told CNBC that the impact of the rate hikes announced so far has not yet fully filtered through into the economy, urging a careful approach to policy decisions.
That comes after last week's inflation data, which was slightly below expectations, led many investors to hope for rate cuts in the second half of the year. Concerns about elevated rates dragging the U.S. economy into a recession have grown louder in recent weeks.
Source: CNBC
