Traders work on the floor of the New York Stock Exchange during the opening bell on Nov. 13, 2024.
The 10-year U.S. Treasury yield inched up on Tuesday as investors looked ahead to the latest Federal Reserve meeting minutes and key economic data due this week.
The yield on the 10-year Treasury rose more than 2 basis points to 4.291%. The 2-year Treasury yield was last near flat at 4.25%.
Yields and prices have an inverted relationship. One basis point equals 0.01%.
Investors considered the state of the economy as they looked to upcoming data and weighed the outlook for monetary policy as the Federal Reserve's latest meeting minutes are set to be released.
The minutes are due Tuesday and, in a week that is quiet when it comes to comments from Fed officials, investors will be scanning them closely for more hints about what could be next for interest rates. The Fed cut rates at its last two meetings, with one remaining this year on Dec. 17-18.
CME Group's FedWatch Tool last showed that traders were pricing in about a 56% chance of rates being cut again then, with a roughly 44% chance of rates staying unchanged.
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That comes ahead of key inflation data, with the personal consumption expenditures price index for October due Wednesday. The PCE is the Fed's favored inflation gauge and could therefore inform its monetary policy decisions.
Money Report
Investors also continued to assess President-elect Donald Trump's choice of hedge fund executive Scott Bessent as Treasury secretary. The pick has widely soothed any nervousness and concerns about the future of the U.S. economy as they expect Bessent to prioritize economic and market stability.
