US Treasury yields take breather after last week's leg up

U.S. government debt yields took a breather from last week's run on Tuesday, the first trading day of the week after the Martin Luther King Jr. holiday.

The yield on the benchmark 10-year Treasury note was slightly higher at around 2.557 percent at 1:34 p.m. ET, while the yield on the 30-year Treasury bond was down at 2.85 percent. Bond yields move inversely to prices.


Bonds have been of key importance lately, but seemed to calm down Tuesday.

Business activity continued at a "solid clip," according to the New York Federal Reserve, whose Empire State Manufacturing index came in at 17.7 in January, little changed from the previous month.

"The new orders index and the shipments index both showed ongoing growth, although at a slower pace than in December," said the New York Fed in statement. "Firms remained very optimistic about future business conditions and capital spending plans were robust."

Tuesday's economic news follows a week of excitement for Treasurys, which fluctuated in light of reports on foreign purchasing.

Last Wednesday, with the matter, that officials in Beijing had recommended that China's government lowers — or even potentially ceases — its buying of U.S. sovereign debt. The annoucement spurred a wave of selling, sending yields near technically critical levels.

China's currency regulator has since , which helped ease sentiment for investors across many markets.