U.S. Treasury yields were little changed on Tuesday as investors looked to economic data for hints about the state of the economy ahead of the Federal Reserve’s meeting.
The yield on the 10-year Treasury2-year Treasury
Yields and prices move in opposite directions. One basis point equals 0.01%.
Treasurys
Investors awaited economic data and looked to the Federal Reserve’s meeting, which is due to begin Tuesday and conclude Wednesday with a fresh interest rate decision and press conference. Investors are hoping to get guidance about the outlook for interest rates as questions about when rates will be cut and how many cuts could come this year have been top of mind.
Markets had been hoping that rates would be cut as soon as June, but this timeline has since moved to September after recent economic data has suggested that inflation is persistent and the economy remains resilient.
Last week, the personal consumption expenditures price index, the Fed’s favored inflation gauge, came in slightly above expectations for March. Headline PCE rose by 2.7% on an annual basis, while core PCE, which strips out food and energy costs, reflected a 2.8% increase from a year earlier.
On Tuesday, investors will be watching out for consumer confidence insights before a series of labor market data is due later in the week. This includes job openings figures for March as well as April’s nonfarm payrolls report.
Elsewhere, data out of the euro zone showed inflation was 2.4% in April, in line with estimates, while gross domestic product rose by 0.3% in the first quarter of 2024.
