On Tuesday, bond yields decreased following a drop in energy prices, with the 10-year Treasury note yield falling over 5 basis points to 5.1937%. The 30-year Treasury yield also declined by 4 basis points to 5.5580%, while the 2-year Treasury yield fell more than 2 basis points to 4.7658%. This movement in yields comes as the U.S.
Treasury markets reopened after a holiday, and it reflects investor sentiment regarding the potential for increased Russian diesel supply in the global market due to a recent energy ceasefire between Russia and Ukraine. West Texas Intermediate crude oil futures dropped 1.49% to $92.34 per barrel.
Investors are closely watching upcoming economic data, particularly the September inflation rate, which is expected to rise to 3.7% from August's 3.4%. Additionally, consumer prices excluding food and energy are projected to increase to 2.5%.
These data releases, including the producer price index and retail sales figures, will provide further clarity on the inflation outlook and the Federal Reserve's interest rate decisions