U.S. Treasury yields remained virtually unchanged ahead of the inflation data
Yields on U.S. Treasury bonds remained virtually unchanged on Tuesday as investors monitored tensions in the Middle East and awaited the release of July U.S. inflation data, according to CNBC.
The yield on 10-year U.S. Treasury bonds, considered a key benchmark for mortgage, auto loan, and credit card rates, rose by less than one basis point to 4.701%. The yield on 30-year Treasuries also rose by less than one basis point, to 5.25%.
At the same time, the yield on 2-year bonds, which typically reflects market expectations regarding the U.S. Federal Reserve’s short-term policy decisions, fell by less than one basis point to 4.23%. One basis point equals 0.01 percentage point. Bond prices and their yields move in opposite directions.
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The day before, on Monday, yields on 10- and 30-year U.S. Treasury bonds rose by four basis points. Markets were also assessing U.S. President Donald Trump’s statements regarding Iran and the potential impact of recent events in the Middle East on inflation and the future trajectory of the Fed’s interest rates.
After an initial rise on Tuesday, oil prices traded near their previous closing levels. U.S. WTI crude oil futures were trading near $82 per barrel, while Brent crude futures were trading near $87 per barrel.
July core inflation figures, both monthly and annual, are set to be released on Wednesday. Later on Tuesday, data on existing home sales were also expected: the forecast was for 4.04 million units in July, compared with 4.09 million the previous month.
