U.S. Treasury yields ticked higher Tuesday after a large drop in durable goods orders and decline in consumer confidence raised some questions about the stability of the economy. The moves were muted as investors awaited a key inflation report later in the week.
At 3:47 p.m. ET, the yield on the 10-year Treasury rose 1 basis point to 4.309%. The 2-year Treasury yield declined nearly 2 basis points to 4.706%.
Yields and prices move in opposite directions. One basis point is equivalent to 0.01%.
Treasurys
Investors considered the state of the economy as they looked to data for hints about how it is faring amid higher interest rates and persistent inflation.
Several further key economic reports are slated for the week that could also provide insight on what the path ahead for Federal Reserve interest rates could look like. This includes the personal consumption expenditures price index, which is a key inflation measure for the Fed.
The latest consumer confidence numbers dropped on concerns over a potential labor market slowdown and turbulent political climate, according to a Conference Board gauge released Tuesday. The board's Consumer Confidence Index declined to to 106.7, which was lower than the downwardly revised 110.9 in January and below the Dow Jones estimate for 115.1.
Fed officials have repeatedly said their decision-making would be data-led, and are looking for further evidence that inflation is moving toward the 2% target. The most recent inflation data for January, however, came in hotter than expected, suggesting to investors that inflation could be more persistent than anticipated.
Market expectations for the first rate cut have moved from as early as March to June in recent weeks, following comments from Fed speakers and economic data releases.
Data from the U.S. Department of Commerce released on Tuesday showed that orders for long-lasting goods declined more than expected in January, with the leading factor being a large drop in demand for transportation. Durable goods orders tumbled 6.1% on the month, worse than the downwardly revised 0.3% decline in December and the Dow Jones estimate for a drop of 5%. Transportation was the main culprit for January's slide, down 16.2%.
— CNBC's Jeff Cox contributed reporting