U.S. Treasury yields declined on Tuesday as investors looked ahead to the release of consumer inflation data for November and considered the impact that could have on interest rates.
Yields and prices move in opposite directions and one basis point is equivalent to 0.01%.
Investors are awaiting the release of November’s consumer price index data, which will indicate whether inflation is easing.
According to a Dow Jones survey, economists are anticipating prices to have risen by 0.3% in November, down from October’s monthly price increase of 0.4%.
As the Federal Reserve continues its fight against persistently high inflation, the fresh figures could also inform the outcome of the central bank’s last meeting of the year, which is set to begin Tuesday.
Many investors are expecting the central bank to implement a 50 basis point rate hike when its meeting ends on Wednesday. They will also be looking to Fed Chairman Jerome Powell’s press conference on Wednesday for insights into the central bank’s economic expectations and policy plans.