U.S. Treasury yields rose on Tuesday as investors assessed key data that could provide offer fresh clues into the state of the economy and influence the Federal Reserve's monetary policy.
The yield on the 10-year Treasury jumped 8 basis points to 4.037%, and hit its highest level since early July. The 2-year Treasury yield added about 3 basis points to 4.902%.
Yields and prices have an inverted relationship. One basis point is equivalent to 0.01%.
Treasurys
Investors considered what could be on the horizon for the economy as they digested the latest economic data, including job openings data that came in slightly behind what was expected. The latest ISM Manufacturing report showed a contraction for the ninth straight month.
Further key figures for the labor market are expected later this week, with ADP's employment change report slated for Wednesday and July's jobs report due Friday.
The data could provide insights into whether the labor market is cooling and thereby give an indication of whether the Fed's restrictive approach to monetary policy is being reflected in the economy.
The Fed has been implementing interest rate hikes since early 2022, with the aim of easing inflation and cooling the economy. After the central bank's latest meeting, Fed Chairman Jerome Powell indicated that the rate-hiking cycle could end soon but may press on pending upcoming economic data.
Uncertainty about whether the Fed can achieve a so-called soft landing has prevailed among investors, many of whom are concerned that that elevated interest rates may lead the U.S economy into a recession.