U.S. Treasury yields ticked lower Wednesday following the previous day's surge, as investors looked ahead to new economic analysis from the Federal Reserve.
The yield on the benchmark 10-year Treasury note traded 7 basis points lower at 3.271% at 4:00 p.m. ET, after hitting its highest level since mid-June during Tuesday's session at 3.353%. The yield on the 30-year Treasury bond was down by nearly 7 basis points at 3.417%.
The yield on the 2-year Treasury traded 6 basis points lower at 3.439%. The short-term note rose to 3.55% last week, reaching its highest level since 2007. Yields move inversely to prices, and a basis point is equal to 0.01%.
Treasurys
Tuesday's climb in yields followed upbeat data releases. The August non-manufacturing PMI from the Institute for Supply Management was registered at 56.9, an increase on the previous month and better than many economists' expectations of 55.5.
The Fed's Beige Book on Wednesday showed economic activity little changed and growth outlooks still weak. Its results are used by the Federal Open Market Committee as part of its policy decision making.
Markets remain on the lookout for signs of the Fed's next steps and whether it will deploy another interest hike to counter rapidly rising inflation at a time of economic slowdown and mounting recession fears.
Tuesday's positive figures may suggest that the Fed could have room to further raise rates without doing subsequent damage to the U.S. economy.