Treasury yields mostly rose on Tuesday morning as investors monitor corporate earnings releases and choppy sentiment on Wall Street.
At around 3:30 a.m. ET, the yield on the benchmark 10-year Treasury note was up at 2.9948% while the yield on the 30-year Treasury bond climbed to 3.1703%. Yields move inversely to prices.
The gap between the 2-year and 10-year yields remained inverted as the market weighs the possibility that the Fed will hike interest rates by 75 basis points at its meeting on July 26 and 27, rather than the more aggressive option of 100 basis points. The 2-year yield was last seen at 3.1684%.
Yield-curve inversions — when shorter-term government bonds have higher yields than longer-term ones despite carrying lower risk — are often viewed by markets as signs that a recession is imminent.
As investors try to plot the path of inflation, economic growth and the Fed’s policy trajectory, stock markets and other risk assets have remained volatile.
The Dow Jones Industrial Average slumped more than 200 points on Monday, reversing an earlier rally as earnings season gathered steam.
On the data front, June’s housing starts and building permits figures are due at 8:30 a.m. ET.
There are no Treasury auctions scheduled for Tuesday.