The yield on the 10-year Treasury note rises after falling to its lowest point in over a year.
Tuesday saw a recovery in Treasury yields as investors kept a tight eye on an alteration of the previous day's sell-off in the global markets.
At 11:20 a.m. ET, the amount produced on the benchmark 10-year Treasury note was more than 5 basis points higher, at 3.836%. It follows the 10-year Treasury note's yield hitting its lowest point since June 2023 on Monday.
At 3.948%, the yield on the 2-year Treasury note increased by about 7 basis point. Prices and yields move in the opposing directions, and 0.01% is equal to one basis point.
Tuesday's report from the Commerce Department revealed that June's U.S. trade deficit decreased less than anticipated. Although it was less than the Dow Jones estimate of $72.5 billion, the goods and services shortfall decreased to a seasonally adjusted $73.1 billion, down $1.9 billion from May. While imports increased by $2 billion and deducted from GDP, exports increased by $3.9 billion. Global markets, in the meantime, were poised to recover from Monday's sharp decline.
U.S. stocks began the month substantially lower due to worries about a worsening economic outlook sparked by new data.
Investors became concerned that the Federal Reserve would be lagging behind in reducing interest rates to prevent a recession as a result of the less positive than anticipated statistics. But as of Tuesday morning, all three main averages had somewhat recovered, rising by about 1%.
At its most recent July meeting, the Federal Reserve kept interest rates unchanged, but Fed Chair Jerome Powell gave markets some optimism by hinting that a September rate decrease is possible.
Regional Fed Presidents Mary Daly of San Francisco and Austan Goolsbee of Chicago both hinted at impending rate reduction during their speeches on Monday, but they did not say when or to what extent.
In accordance with CME Group's FedWatch Tool, traders are currently pricing in a 65% possibility of the central bank lowering rates by 50 basis points at its upcoming meeting in September.
