US Treasurys waver after inflation, housing data; oil pares gains

U.S. sovereign bonds prices wavered Tuesday as investors digested U.S. inflation and housing data, while eyeing oil prices.

The yield on the 10-year Treasury note, which moves inversely to its price, climbed to 1.756 percent after falling earlier in the day. The yield on the 30-year Treasury bond slid to 2.585 percent.

Two-year yields, meanwhile, rose to 0.827 percent, and hit their highest level in nearly three weeks.

Symbol
Yield
 
Change
%Change
US 3-MO
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US 1-YR
---
US 2-YR
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US 5-YR
---
US 10-YR
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US 30-YR
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In oil markets, Brent crude prices flirted with $50 per barrel, before paring gains. WTI settled 1.2 percent higher at $48.42. Those moves come on the back of supply concerns including outages in Nigeria and Canadian wildfires that are once again threatening Alberta's oil sands.

U.S. stock prices also dipped on Tuesday, with the major averages losing more than 1 percent each.

On the data front, the U.S. consumer price index rose 0.4 percent last month, more than the expected 0.3 percent rise. U.S. housing starts also rose more than expected last month.

Overall industrial output rose 0.7 percent last month, beating the consensus forecast of a 0.3 percent gain, as utilities output rebounded from March when it was restrained by warmer-than-usual weather.

Dallas Federal Reserve Bank President Robert Kaplan said on Tuesday that the U.S. economy is strong enough to justify an interest-rate hike in the "not too distant future," but increases will be very gradual.

— Reuters contributed to this report.