U.S. Treasury yields dipped on Wednesday as investors looked to earnings reports and economic data for fresh insights into the state of the U.S. economy and what to expect from now.
The 10-year Treasury was trading more than 2 basis points lower at 3.445%. The yield on the 2-year Treasury was about 2 basis points lower at 4.131%.
Yields and prices move in opposite directions. One basis point equals 0.01%.
As concerns about a looming recession have spread, investors are looking to earnings reports to assess how companies are faring. They are also scanning future guidance issued alongside the reports for hints about the outlook for the U.S. economy.
IBM and Tesla are among the companies reporting on Wednesday after the market closes.
As the week continues, several key economic data reports will also be released, including gross domestic product figures on Thursday and the personal consumption expenditure (PCE) price index on Friday. The PCE reflects how much consumers pay for products and is one of the Federal Reserve's favored inflation gauges.
It could therefore inform the central bank's next interest rate decision, which is expected to be announced on Feb. 1 at the conclusion of the Fed's next meeting.
Investors have been fretting over whether the Fed will increase rates by 25 or 50 basis points as it continues its battle against persistently high inflation. Many are concerned that the pace of rate hikes implemented so far is leading the U.S. economy into a recession.