Treasury yields move lower as investors look ahead to more delayed data

U.S. Treasury yields inched lower on Tuesday as investors looked ahead to more delayed data releases during the holiday-shortened trading week.

The 10-year Treasury yield dropped more than 2 basis points to 4.029%, and the 30-year Treasury bond yield dipped 2.7 basis points to 4.672%. The 2-year Treasury note yield was 1 basis point lower at 3.397%.

One basis point equals 0.01%, and yields move inversely to prices.

The bond market was closed for Presidents’ Day on Monday, and Tuesday is shaping up to be a quiet start to the week for investors, who are awaiting several economic data releases.

Investors are anticipating the FOMC minutes on Wednesday, which they will parse for insights on the last interest rate decision and future monetary policy.

They are also expecting more delayed economic data this week, including housing data for November and December on Wednesday, as well as December’s personal consumption expenditures index on Friday, the Federal Reserve’s preferred inflation gauge.

Traders are currently pricing in a 90% chance of the Fed keeping interest rates unchanged in a range between 350-375, per the CME FedWatch Tool.