U.S. Treasury yields ticked lower on Tuesday as investors looked toward key data on U.S. home-prices.
The 10-year Treasury yield was over 5 basis points lower at 4.341%, and the 2-year Treasury yield slipped over 4 basis points to 4.123% at 4:49 am ET.
One basis point is equivalent to 0.01%, and yields and prices share an inverse relationship.
Treasurys
Investors are anticipating the release of the S&P CoreLogic Case-Shiller National Home Price Index, which tracks the shift in the average sale price of single-family homes in the U.S. The data will measure the three-month period through December.
Concerns are also swirling around U.S. President Donald Trump’s potential tariffs with key trading partners, as uncertainty continues to weigh on market sentiment. Trump stated Monday that tariffs on Canada and Mexico “will go forward” after the deadline for the month-long delay concludes next week.
The personal consumption expenditure index, scheduled for release on Friday, is the key data to watch this week. As the Federal Reserve’s preferred inflation measure, it plays a major role in shaping the central bank’s rate-cut decisions.
Earlier this month, following the stronger-than-anticipated CPI report in January, Federal Reserve Chair Jerome Powell indicated that the Fed does not need to hurry to lower interest rates further.
Last week, the S&P Global Purchasing Managers’ Index for manufacturing came in at 51.6 in February, raising concerns over the state of the U.S. economy. The figure fell short of the Dow Jones consensus estimate of 52.8.