Treasury yields rose early Tuesday ahead of closely watched U.S. consumer price index data for October, due later in the session.
The yield on the 2-year Treasury note, which more closely follows short-term Fed rate decisions, climbed more than 6 basis points to 4.6136%. Yields on 10-year Treasurys — the benchmark for mortgages, car loans and credit card rates — were up by 2 basis points to 4.882%. The 30-year Treasury bond yield, which is often impacted by geopolitical developments, was broadly flat at 5.261%.
One basis point equals 0.01% or 1/100th of 1%, and yields and prices move inversely to one another.
Economists polled by Reuters expect an October consumer price index print of 0.3% in October, down from 0.6% year-on-year growth in September. Core consumer prices, which exclude food and energy, are expected to rise by 0.2%, lower than the 0.3% rise in September.
Traders are looking for evidence that inflationary pressure on the U.S. economy is slowing. The CPI data is due at 8.30 a.m. ET.