Yields were mixed on Tuesday as the Federal Reserve's November meeting kicked off and Wall Street looked ahead to another rate hike.
The benchmark 10-year Treasury note yield dipped about 3 basis points to 4.048%. Earlier in the day, it fell to around 3.9%. The 2-year rate traded more than 4 basis points higher at 4.547% after trading lower earlier in the session.
Yields and prices move in opposite directions and one basis point equals 0.01%.
Treasurys
The moves in yields came ahead of the Fed's rate decision expected Wednesday. The Fed is largely predicted to raise rates by 75 basis points, but hope is growing that future rate hikes won't be as large. The latter expectation has contributed to recent gains in risk assets such as stocks.
Investors have been betting that the October rally marks a turnaround for stocks, or that it signals equities have hit a bottom.
A bottom, however, won't occur until the yield on the 2-year reaches its peak, said Victoria Fernandez, chief market strategist at Crossmark Global Investments.
"If Powell doesn't signal a pause or pivot this week, we could see yields jump higher pushing equity markets lower," she said.
On the data front, U.S. job openings surged in September to 10.72 million, according to the latest Job Openings and Labor Turnover Survey. That's well above a FactSet forecast of 99.85 million.
Meanwhile, the ISM manufacturing index came in at 50.2, marginally above a Dow Jones estimate of 50.