On Tuesday morning, U.S. Treasury yields remained largely unchanged following a significant rise the previous day. The benchmark 10-year Treasury yield was trading at 5.302%, having reached its highest level since April 2002, while the 30-year Treasury bond yield was slightly higher at 5.665%, also marking levels not seen since May 2002.
The 2-Year Treasury note yield decreased by 1 basis point to 4.818%. The surge in yields on Monday was driven by data from the Institute for Supply Management, which indicated a slight cooling in services growth, with the PMI reading at 54.9 for September. This figure met expectations but was marginally lower than August's growth.
The price index within the service ISM increased by 1.4 points to 74. Traders are currently pricing in a 78% likelihood that the Federal Reserve will maintain interest rates at its next meeting. The release of the FOMC minutes from the September meeting on Wednesday is highly anticipated, as investors seek clues regarding the Fed's future monetary policy direction