U.S. Treasury yields slipped on Tuesday as traders geared up for the release of Federal Reserve meeting minutes and the closely watched central bank symposium at the end of the week.
The yield on the 10-year Treasury slid nearly 5 basis points, sitting at 3.818%. The 2-year Treasury yield declined by around 7 basis points to 3.998%.
Yields and prices move in opposite directions. One basis point equals one one hundredth of a percent (0.01%).
Investors are still reacting to last week's release of U.S. retail sales figures for July and weekly initial jobless claims, which were both better than expected. The figures helped ease recent concerns about the health of the U.S. economy, boosting global stock markets.
Markets continue to fully price in a Fed rate cut in September, though they have slashed the odds of a 50 basis-point, half a percentage point, reduction to just 26.5%, according to CME Group's FedWatch Tool.
The benchmark fed funds borrowing rate has stood at 5.25% to 5.50% since July last year.
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Looking ahead, investors will monitor the release of minutes from the Fed's July meeting on Wednesday, and the start of the Jackson Hole, Wyoming, symposium, which kicks off Thursday.
Money Report
Fed Chair Jerome Powell will deliver his widely anticipated speech Friday at the annual event sponsored by the Kansas City Fed, which attracts central bankers, economists and academics from around the world.
"Jackson Hole is going to be something which is going to give very important cues to the market in terms of what should we be expecting in September," Rashmi Garg, senior portfolio manager at Al Dhabi Capital, told CNBC's "Capital Connection" on Monday. "However, we do not expect Powell to give indications in terms of the size of the rate cut."
"Our own expectations are this is going to be a 25 basis point rate cut unless we see a sizeable deterioration in the labor market in the September 6 jobs report," she added.
