U.S. Treasury yields were slightly lower in the early hours of Tuesday morning as investors continue to assess inflation, with key data over the weekend.
The yield on the 10-year benchmark Treasury bond fell to 3.021%, after surpassing its highest level in almost a month on Monday, while the yield on the 30-year Treasury bond fell to 3.173 %. Yields move inversely to prices.
Reading the consumer price index for May Friday is the highlight of the week. If last month’s publication were lower than in April, markets could try to deduce that inflation has peaked, making the path of monetary policy slightly more predictable.
Economic data released on Tuesday will include a reading of the April trade balance, while the Federal Reserve remains silent during its shutdown period.
Investors are still trying to determine if a recent resurgence of equities is a rebound in the bear market or a sign that the sale of risky assets for the year has bottomed out.