On Tuesday, U.S. Treasury yields rose despite a decline in oil prices, indicating investor focus on upcoming economic indicators. The yield on the 10-year Treasury note climbed over 3 basis points to 4.483%, while the 2-year note yield also increased by more than 3 basis points to 4.213%. The 30-year Treasury bond yield saw a smaller rise of over 1 basis point, reaching 4.919%.
This movement in yields occurs ahead of the release of May's personal consumption expenditures price index on Thursday, which is the Federal Reserve's preferred measure of inflation. Economists expect core PCE, excluding food and energy prices, to show an increase from April's figures.
The recent Federal Reserve meeting indicated a more hawkish stance than anticipated, with potential interest rate hikes being considered as early as October. The Fed maintained the federal funds rate at 3.5%-3.75%, but the removal of language suggesting a bias toward rate cuts signals a shift in policy direction.
Investors are closely monitoring inflation data, as it may prompt the Fed to adjust interest rates sooner than previously expected