10-year Treasury yield tops 4.6% for the first time in nearly a month

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U.S. Treasury yields advanced for another day on Wednesday, as investors considered the state of the economy and digested a poor auction on the five-year note.

The yield on the 10-year Treasury added more than 7 basis points to 4.614%, its highest level since near the start of May. The 2-year Treasury yield was last around 2 basis points higher at 4.975%.

Yields climbed higher Tuesday after a Treasury Department auction of 5-year notes worth $70 billion saw low demand. The bid-to-cover ratio, which is a closely watched demand gauge, came in at 2.3, below the 10-auction average of 2.45.

Investors also considered how the economy is faring and awaited fresh economic data due throughout the week which could inform Federal Reserve policymaking.

That includes the personal consumption expenditures price index on Friday, which is the Fed's favored inflation gauge. Several Fed officials are also due to give remarks this week, which investors will be scanning for fresh hints about the path ahead for interest rates.

Minneapolis Fed President Neel Kashkari on Tuesday told CNBC that he was looking for "many more months of positive inflation data" before being comfortable with cutting rates.

Fed officials have in recent weeks widely indicated that patience is needed when it comes to rate cuts, and that they are looking for economic data to show inflation is sustainably returning to the central bank's 2% target before moving to ease policy.

Minutes from the last central bank meeting, which were released last week, also showed uncertainty from the Fed about the outlook for rate cuts.

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