U.S. Treasury yields edged higher on Tuesday as traders weighed conflicting signals over U.S.-Iran negotiations. The 10-year yield added two basis points to 4.708%, while the 30-year yield held just below its highest level since 2007.
The 10-year Treasury yield rose two basis points to 4.708% on Tuesday, the key benchmark for U.S. government borrowing costs. A basis point equals 0.01%, and yields move opposite to prices.
Short-term debt moved less: the 2-year Treasury yield rose less than one basis point to 4.264%, a note that tracks Federal Reserve interest-rate policy more closely than longer maturities. Longer-dated debt moved more, as the 30-year Treasury yield added two basis points to 5.254%, hovering just below its highest level since 2007.
Investors reacted to an apparently hawkish hold from Federal Reserve rate-setters last week, which still weighs on the long end of the curve. As a result, yields are struggling for direction while conflicting reports about the state of U.S.-Iran talks keep traders on edge.
President Trump described the latest round of negotiations as the "last chance" to end the five-month conflict, according to CNBC. However, Tehran continues to deny that direct negotiations with the U.S. are taking place, or that any are planned.
Economic data due Tuesday include JOLTs job openings and international trade figures for the month, which traders will parse for further clues on the rate path.
Source: CNBC
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