U.S. Treasury yields climbed on Tuesday as markets reopened after the Labor Day holiday and investors considered what could be next for the economy.
Yields and prices move in opposite directions. One basis point equals 0.01%.
Investors continued to weigh the outlook for the economy as oil prices spiked on an extension in supply curbs.
The news, along with global growth concerns are fueling some fears "expectations rates will have to stay higher for longer," said Ed Moya, senior market analyst at Oanda.
"Surging oil prices are also weighing on sentiment as the risk of $100 appears to be back," he said. "Parts of Wall Street are starting to become concerned that it will be too hard for stocks to beat the yield you will get from Treasuries. "
The moves come on the heels of Friday's nonfarm payrolls report for August, which showed that the unemployment rate hit its highest level since February 2022. Average hourly earnings were lower than previously expected.
Many investors took this as a sign that inflationary pressures could be easing and the Fed's interest rate hikes are taking effect. Cooling the labor market has been one of the central bank's key policy goals alongside slowing the overall economy.
Markets are bracing for the Federal Reserve's policy meeting later this month, with traders expecting the central bank to leave rates unchanged at its next meeting later this month.