U.S. Treasury yields were slightly lower early on Tuesday morning as investors continue to assess inflation, with key data out later in the week.
The yield on the benchmark 10-year Treasury note slid to 3.0270%, having surpassed its highest level in almost a month on Monday, while the yield on the 30-year Treasury bond slipped to 3.1765%. Yields move inversely to prices.
May’s consumer price index reading on Friday is the week’s marquee moment. Should last month’s print come in lower than April’s, markets could look to deduce that inflation has peaked, rendering the path of monetary policy slightly more predictable.
Economic data releases on Tuesday will include April’s balance of trade reading, while the Federal Reserve remains quiet during its blackout period.
Investors are still trying to determine whether a recent resurgence in stocks is a bear market rally or a sign that the year’s risk asset sell-off has bottomed.
An auction will be held Tuesday for $44 billion of 3-year Treasury notes.