The 10-year U.S. Treasury yield edged higher Tuesday to start the shortened trading week, as investors await fresh data releases on inflation.
The benchmark yield rose 2 basis points to 4.493%, while the 2-year Treasury yield shed 2 basis points to 4.933%.
Yields and prices move in opposite directions. One basis point equals 0.01%.
Investors are hungry for more data on the economic and inflationary picture after the minutes from the Federal Reserve‘s latest meeting, released last week, showed uncertainty among policymakers about when to ease policy. On Friday, they’ll parse the April personal income and expenditures report, which includes a measurement of price movements across a range of consumer expenses.
On Tuesday, Conference Board data showed consumer confidence unexpectedly increased. However, expectations for inflation also climbed.
Minneapolis Federal Reserve President Neel Kashkari told CNBC Tuesday it would require “many more months of positive inflation data” to convince him that the Fed should cut rates once or twice this year.
Traders expect the Fed to stay on hold until at least September, when the central bank is expecting to start lowering rates gradually.
