Traders work on the floor of the New York Stock Exchange on July 11, 2024.
U.S. Treasury yields were slightly lower on Tuesday as investors considered the outlook for the U.S. economy ahead of key data slated for the week.
The 10-year Treasury slipped about a basis point at 4.25%. The yield on the 2-year Treasury was last down by 3 basis points to 4.491%.
Yields and prices move in opposite directions. One basis point equals 0.01%.
Investors awaited the latest economic data as they assessed the state of the U.S. economy and what this could mean for the Federal Reserve's monetary policy decisions.. Later in the week, a reading of second-quarter gross domestic product and June's personal consumption expenditures price index are expected.
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The latter is the Fed's preferred inflation gauge, and could therefore inform guidance issued by the Fed about the outlook for monetary policy when it meets next week. Markets are not expecting interest rates to be cut then but are anticipating clues about a timeline for monetary policy being loosened.
Traders were last pricing in a high chance of the first interest rate cut to come in September.
While Fed policymakers have indicated that they are not yet ready to cut rates and are looking for more economic data to reflect inflation is easing, Fed Chair Jerome Powell earlier this month suggested the central bank would not wait until inflation has reached 2% before cutting rates.
Money Report
Uncertainty remains over whether there will be any other cuts this year, and if so, how many.
