U.S. Treasury yields were higher on Tuesday as investors awaited a fresh batch of economic data and Treasury auctions following Monday’s Labor Day recess.
The yield on the 2-year Treasury note jumped nearly 7 basis points to trade at 3.4679%. The short-term note climbed to 3.55% last week, notching its highest level since 2007. Yields move inversely to prices, and a basis point is equal to 0.01%.
On the data front, a final reading of S&P global services purchasing managers’ index for August is slated for 9:45 a.m. ET on Tuesday, while the Institute for Supply Management’s non-manufacturing PMI figures for August will follow at around 10 a.m. ET.
The data points come amid persistent worries about an economic slowdown, with investors monitoring whether the Federal Reserve is likely to continue hiking interest rates at an aggressive pace in a bid to tame soaring inflation.
The U.S. Treasury on Tuesday will auction $54 billion in 13-week bills, $42 billion in 26-week bills and $34 billion in 52-week bills.