Treasury yields rose early Tuesday ahead of the final major inflation prints before the Federal Reserve’s September meeting.
The yield on the 10-year Treasury was 2 basis points higher at 3.721%, with the 2-year Treasury yield also up by 2 basis points at 3.691%.
Yields and prices move in opposite directions. One basis point is equivalent to 0.01%.
Treasurys
Treasury yields have stablized after tumbling through last week when aseries of labor market releases missed estimates. The data also sent U.S. stocks to their worst week of the year so far.
Investors are now keenly awaiting August’s consumer price index, set to be published Wednesday, to see if headline inflation will ease further from July’s 2.9% reading as expected.
That will be followed by the producer price index on Thursday.
Debate has erupted over whether the Fed could opt for a 50 basis point rather than a 25 basis point interest rate cut during the Sept. 17-18 meeting. Some analysts argue such a move would show the Fed’s commitment to supporting jobs growth, as others contend it would be an unnecessary step that could sow market panic.
CME Group’s FedWatch Tool currently places market pricing for a 50 basis point move at 27%, against 73% for the smaller move.