U.S. Treasury yields were relatively unchanged on Tuesday as investors look ahead to remarks due out from central bank officials this week, including a speech by Fed Chair Jerome Powell expected later in the day.
The 10-year Treasury yield was less than one basis point lower at 4.139%. The 2-year Treasury yield was flat at 3.601%. The 30-year Treasury bond yield rose less than a basis point to 4.764%.
One basis point equals 0.01%, and yields and prices share an inverse relationship.
One of the key economic updates expected this week is the personal consumption expenditures (PCE) index — the Federal Reserve’s favored inflation measure — which should give a glimpse of inflationary pressures and the state of the broader U.S. economy.
Last week, the Fed delivered its first rate cut of the year, meeting market expectations by lowering its benchmark interest rate by a quarter-percentage point.
“Given there haven’t been material data developments since last week’s press conference, our US economists expect his tone to align closely with his remarks last week,” Deutsche Bank’s analysts said in a research note.
The Fed’s “dovish shift” during the September assembly of the Federal Open Market Meeting Committee should be positive for interest rate markets over the next several months, said global asset manager Eastspring Investments in a note published Tuesday.
