U.S. Treasury yields turned mostly lower Tuesday as uncertainty about the outlook for the economy and interest rates lingered.
The yield on the 2-year Treasury was about 4 basis points lower at 4.612%. The 10-year Treasury yield was last 2 basis points to 4.275%.
Yields and prices move in opposite directions. One basis point equals 0.01%.
Treasurys
Treasury yields had climbed Friday as a hotter-than-expected producer price index report added to concerns about sticky inflation. Markets were closed Monday in observance of George Washington's birthday in the U.S.
The PPI increased by 0.3% in January, higher than the 0.1% rise expected by economists surveyed by Dow Jones. The so-called core CPI, which excludes food and energy prices, rose by 0.5%, also above the forecast 0.1%. That came after the consumer price index for January also came in above expectations last week, reflecting increases of 0.3% on a monthly basis and 3.1% on an annual basis.
The data suggested to many investors that inflation could be more persistent than they had been hoping for and that interest rate cuts may be further away than previously expected.
Federal Reserve officials have said numerous times in recent months that their decision-making around when rate cuts will begin will be data-led. They've suggested they're looking for more evidence that inflation is easing before cutting rates.
Investors have been hoping that rate cuts will take place sooner rather than later as concerns about the impact of elevated interest rates on the economy have spread. Traders have pushed out expectations for the first rate cut to June, a switch from the earlier outlook that the central bank would move as soon as March.