U.S. Treasury yields rose on Tuesday, with the 10-year Treasury yield topping 1.5%.
The yield on the benchmark 10-year Treasury note rose 5 basis points higher, to 1.531%, at around 4:00 p.m. ET. The yield on the 30-year Treasury bond gained 4.8 basis points to 2.098%. Yields move inversely to prices and 1 basis point is equal to 0.01%.
Last week, the 10-year Treasury hit 1.56%, its highest level since June. Expectations around an imminent tapering of asset purchases, as well as concerns around persistent inflation, have seen Treasury yields spike.
David Miller, investment director at Quilter Cheviot, told CNBC's "Squawk Box Europe" on Tuesday that the Fed was one of the big central banks that had the "luxury of taking a backseat" and would be able to maintain that inflationary pressures are transitory for "a while longer."
"And to be honest I think the Fed's main priority will remain growth, whatever happens, even if that means a little bit more inflation," Miller said.
ADP's September employment change report is due out at 8:15 a.m. ET on Wednesday and the highly anticipated nonfarm payrolls report for last month is set to be released at 8:30 a.m. ET on Friday.
Jobs data, along with inflation readings, are used by the Federal Reserve to track the economic recovery from the coronavirus pandemic and to gauge when it can start to wind back emergency stimulus measures, starting with tapering asset purchases. The Fed said in its September meeting that it would look to pull back its bond purchases soon.
Investors will also be keeping tabs on progress to address the looming debt default in Washington. Lawmakers have until Oct. 18 to raise or suspend the U.S. borrowing limit, in order to avoid the first-ever default on national debt.
Auctions are scheduled to be held on Tuesday for $34 billion of 52-week bills and $25 billion of eight-day bills.