U.S. Treasury yields edged lower on Tuesday as traders braced for key inflation data due later this week.
The 2-year fell 6 basis points to trade at 3.0078%, but remained above the 10-year Treasury, which fell 6 basis points to 2.9225%, falling back below the 3% mark. The 30-year Treasury yield traded 5 basis points lower at 3.1257%. Yields move inversely with prices and the basis point is equal to 0.01%.
Markets await key inflation data this week. The consumer price index for June, scheduled for release on Wednesday, is expected to show headline inflation rising above May’s 8.6% level. This inflation figure also applies to energy and food.
All three major US stock indexes closed in negative territory on Monday.
The National Federation of Independent Business Optimism Index for June, which focuses on small businesses, will be released on Tuesday, as will the IBD/TIPP Economic Optimism Index, which is the earliest monthly survey of consumer confidence.
The US will also release its July Red Book, a sales-weighted record of annual growth among a selection of major retailers representing about 9,000 stores. The 52-week bill is scheduled for auction on Tuesday.
Friday’s June employment report showed that jobs grew at a faster pace than expected. Nonfarm payrolls increased by 372,000 last month, according to the Bureau of Labor Statistics. Economists predicted the U.S. economy would add 250,000 jobs, according to Dow Jones.
President Joe Biden begins his Middle East trip that will include a visit to Saudi Arabia and meetings with OPEC leaders in an effort to push for higher oil production to ease prices.
US Treasury Secretary Janet Yellen will meet with Japanese Finance Minister Shunichi Suzuki on Tuesday to discuss additional sanctions against Russia over its war in Ukraine.
Gold hit its lowest level since late September when the dollar hit a two-decade high, trading at $1,732.40 an ounce at 8:30 a.m. in London.
On Friday, yields jumped after the jobs report on speculation that the US Federal Reserve will be more aggressive on its rate hike path.
— CNBC’s Samantha Subin and Matt Clinch contributed to this report.
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