U.S. Treasury yields slightly decreased on Tuesday as traders looked forward to upcoming delayed data releases during the holiday-shortened trading session.
As of 3:34 a.m. ET, the 10-year Treasury yield had fallen over 3 basis points to 4.02%, while the 30-year Treasury bond yield had also slipped 3 basis points to 4.66%. The 2-year Treasury note yield was down by 2 basis points to 3.388%.
One basis point corresponds to 0.01%, and yields fluctuate inversely to prices.
The bond market was shut for Presidents’ Day on Monday, and Tuesday appears to be a calm start to the week for traders, who are anticipating multiple economic data announcements.
This includes the weekly ADP Employment Change report on Tuesday morning, along with February’s Empire Manufacturing Index and the NAHB Housing Market Index.
Traders are looking forward to the FOMC minutes on Wednesday, which they will analyze for clues regarding the last interest rate decision and forthcoming monetary policy.
They also expect additional deferred economic data this week, including housing metrics for November and December on Wednesday, as well as December’s personal consumption expenditures index on Friday, which is favored by the Federal Reserve as an inflation measure.
Market participants are currently factoring in a 90% likelihood that the Fed will maintain interest rates steady within a range of 350-375, according to the CME FedWatch Tool.
