U.S. Treasury yields were higher on Tuesday as investors weighed the state of the economy ahead of key inflation data due later this week.
The yield on the 10-year Treasury was less than 1 basis point higher to 4.011%. The 2-year Treasury yield was last about 2 basis points higher at 4.362%.
Yields and prices move in opposite directions. One basis point equals 0.01%.
Treasurys
Investors assessed the outlook for the economy as they looked to economic data due this week that could provide hints about the path for monetary policy, especially interest rates.
While the Fed is expected to cut interest rates this year, questions remain about when and how often. The central bank said last month that it expected three cuts, though some investors have been hoping for more.
The Fed has hasn't suggested a timeline for rate cuts, and in minutes from its December meeting released last week it said "that the actual policy path will depend on how the economy evolves."
Traders were last pricing in a 58% chance of the first rate cut taking place in March, according to CME Group's FedWatch tool.
Economic data due this week could provide fresh hints about what could be next for interest rates, with December's consumer price index slated for Thursday, followed by the producer price index for the month on Friday. Consumer inflation expectations continued to ease in December, a report published Monday showed.
On Tuesday, investors will be following the release of November's balance of trade, import and export figures.