Treasury yields pulled back early Tuesday after the 10-year yield hit a fresh 14-month high on in the previous session.
The 10-year yield fell nearly 3 basis points to 4.778%, while the 2-year Treasury yield was more than 1 basis point lower at 4.386%.
One basis point is equal to 0.01%. Yields and prices move in opposite directions.
Treasurys
Investors are gearing up for the release of the producer price index, a measure of wholesale prices, at 8:30 a.m. ET Tuesday. Economists polled by Dow Jones forecast a headline reading of 0.4% and a core reading, excluding food and energy, of 0.3%.
That comes ahead of the consumer price index on Wednesday.
U.S. bond yields spiked last week, after a hotter-than-expected jobs report fueled expectations for a slow pace of Federal Reserve interest rate cuts this year.
The central bank next meets from Jan. 28-29, where markets have priced in a more than 97% probability of a rate hold, according to CME’s FedWatch tool.