The 10-year U.S. Treasury yield rose Tuesday, hitting a new 15-year high.
The 10-year Treasury yield climbed to 4.566%, its highest level since Oct. 18, 2007 when it yielded as high as 4.570%. The 30-year Treasury yield hit 4.7%, also reaching a level not seen since February 2011. On the shorter end of the curve, the 2-year Treasury yield was little changed at 5.136%.
Yields and prices move in opposite directions. One basis point equals 0.01%.
Treasurys
Several key reports released Tuesday morning fell short of economist expectations. August's new home sales came in at 675,000 for the month, under the 695,000 anticipated by economists polled by Dow Jones. This was also down 8.7% from July's level, according to the Commerce Department.
The Conference Board's consumer confidence index also fell to 103 in September, below the anticipated 105.5 based on consensus estimates from Dow Jones. This figure is also down from 108.7 in August.
Investors considered what could be ahead for interest rates and when the Fed may hike rates again. At the conclusion of its latest policy meeting, the central bank left rates unchanged but said it expected one further rate hike this year. Two Fed meeting remain this year.
The central bank also adjusted its forecast for rate cuts, signaling that rates will likely stay higher for longer as the economy has shown resilience and inflation remains too high even as price pressures have somewhat eased.
Key inflation data is expected Friday in the form of the personal consumption expenditures price index, which is a key economic indicator for the Fed.
Investors were also concerned about a potential shutdown of the U.S. government as Congress remains divided over a spending bill. Lawmakers must come to an agreement to ensure that the government remains funded for the rest of the fiscal year, or a shutdown could happen as early as Oct. 1.
On Monday, Moody's Investors Service indicated that a shutdown could negatively affect the U.S.' credit rating.