U.S. Treasury yields were little changed on Tuesday as investors wait for commentary from the Federal Reserve on inflation, interest rates and the economy.
The yield on the 10-year Treasury was less than 1 basis point higher at 3.875%. The 2-year Treasury yield nudged 1 basis point lower to 4.057%.
Yields and prices move in opposite directions. One basis point equals 0.01%.
Traders are gearing up for a Fed-focused week. There is the release of Federal Reserve July meeting minutes on Wednesday, followed by the start of the central bank symposium at Jackson Hole, Wyoming, on Thursday.
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The week will be rounded off by a highly anticipated speech by Fed Chair Jerome Powell at Jackson Hole. While analysts don't expect firm guidance on the path ahead for interest rates, they are looking for a sense of Powell's latest thinking on U.S. inflation and the economy. His remarks come after data showed annualized inflation hit 2.9%, while July retail sales and weekly initial jobless claims boosted sentiment last week.
These events come as market participants become increasingly confident that the central bank will soon begin cutting interest rates. Indeed, Fed funds futures are pricing in a 100% probability that the central bank decreases the borrowing cost at its September meeting, according to CME's Fed Watch Tool.
