US Treasury yields edge lower ahead of key inflation reports

U.S. government debt yields slipped Tuesday as investors prepared for key inflation reports.

The yield on the benchmark 10-year Treasury note edged lower to 2.837 percent at 4:28 p.m. ET, while the yield on the 30-year Treasury bond was unchanged at 3.122 percent. Bond yields move inversely to prices.

Symbol
Yield
 
Change
%Change
US 3-MO
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US 1-YR
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US 2-YR
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US 5-YR
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US 10-YR
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US 30-YR
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While investors will continued to watch the latest in the bond market as concerns over higher interest rates weighed.

The Labor Department is set to release its monthly Consumer Price Index (CPI) data on Wednesday, the next inflation update for investors. That report, along with the Producer Price Index (PPI) data on Thursday, will be scrutinized by both traders and Federal Reserve officials for any signs of price movement in the economy.

Any hint of rising inflation could push yields higher, a fear which helped spark last week's big equity sell-off.

Volatile trading has continued across markets worldwide this week, keeping investors on edge. On Monday, the U.S. 10-year Treasury yield hit a new four-year high during trade, while U.S. stocks finished on a positive note, with the Dow Jones industrial average closing more than 400 points up.

Looking to the Fed, Cleveland Fed President Loretta Mester is expected to comment on monetary policy and its outlook at the Dayton Area Chamber of Commerce's government affairs breakfast in Dayton, Ohio.

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On Monday, President Donald Trump unveiled the U.S.' latest budget, with the White House calling for $3 trillion in deficit reduction, which would include $1.7 trillion in mandatory spending cuts, while proposing to cut discretionary spending by 2 percent a year after 2019.

The program also calls for cuts to programs like Medicare, in addition to an increase in military spending and funding for Trump's proposed wall along the Mexican border. Congress, however, will ultimately decide when it comes to setting spending levels.

—CNBC's Ylan Mui and Reuters contributed to this report