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Treasury yields hold steady as investors weigh the state of the economy – NBC New York

U.S. Treasury yields were little changed on Tuesday as investors considered the latest economic data and what it could mean for the economy.

At 3:19 a.m. ET, the yield on the 10-year Treasury note fell less than one basis point to 4.3943%. The yield on two-year government bonds last traded at 4.8162%, after falling less than one basis point.

Yields and prices move in opposite directions. One basis point corresponds to 0.01%.

Yields were down on Tuesday, with 10-year Treasury yields falling nearly 12 basis points, after economic data pointed to a contraction in the manufacturing sector.

The ISM production index for the month of May came to 48.7, below the expected figure of 49.6. Values ​​below 50 indicate a contraction.

The ISM services index will also be published on Wednesday, giving investors insight into another sector. Also out this week is the May jobs report, with new labor market data including nonfarm payrolls and the unemployment rate.

The latest figures on vacancies and factory orders will be released on Tuesday.

The figures come ahead of the Federal Reserve meeting scheduled for next week. Investors generally expect the central bank to keep interest rates unchanged, but will watch closely for indications of what policymakers expect for monetary policy and the economy.

The Fed is now in the so-called blackout period before its meeting, during which officials are limited in what they can discuss publicly. In recent weeks, however, Fed officials have indicated they are looking for more data showing inflation is slowing before easing monetary policy.

Elsewhere, the European Central Bank is expected to announce its first interest rate cut since 2019 this week.

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