The yield on the 10-year Treasury note slipped on Tuesday to kick off the final trading week of 2023.
The yield on the benchmark note dipped about 2 basis points to 3.893%. The 2-year note yield inched up more than a basis point to 4.352%.
Yields move inversely to prices. U.S. markets were closed Monday due to the Christmas holiday.
Tuesday's moves come after traders received encouraging U.S. inflation data last week.
The Federal Reserve's preferred inflation metric, the core personal consumption expenditures price index, rose 0.1% month over month in November and 3.2% from a year earlier. Economists expected a gain of 0.1% for the month and 3.3% year over year, according to Dow Jones.
"Nothing in the report suggests that the US personal sector is close to rolling over, so the question that remains is whether the current improvement in goods costs can be sustained in a fairly high demand environment," wrote Michael Shaoul, chairman and CEO of Marketfield Asset Management.
"If it can, then the FOMC can probably make good on its intention to ease policy in 2024, but any reversal in price trend would make it much harder to justify a meaningful pivot in policy," he added.