On Tuesday, Treasury yields rose, with the 2-year note yield climbing over 6 basis points to 4.6136%, while the 10-year yield increased by 2 basis points to 4.882%. The 30-year bond yield remained stable at 5.261%. Investors are particularly focused on the upcoming consumer price index (CPI) data, expected to show a 0.3% increase for October, down from 0.6% year-on-year growth in September.
Core consumer prices are projected to rise by 0.2%, compared to 0.3% in September. This data is crucial as it may influence the Federal Reserve's interest rate decisions, especially following stronger-than-expected employment data that showed 165,000 jobs added in October.
Additionally, oil prices fell below $90 a barrel, influenced by comments from President Trump regarding the potential resolution of the conflict with Iran. The market has largely priced in a 25 basis point rate hike in December, reflecting ongoing concerns about inflation and economic stability