U.S. Treasury yields were little changed Tuesday morning amid concerns about a slowdown in growth.
The yield on the benchmark 10-year Treasury note inched less than a basis point higher to 1.174% at 8:38 a.m. ET. The yield on the 30-year Treasury bond fell slightly to 1.848%. Yields move inversely to prices and one basis point equals 0.01%.
The 10-year yield fell to 1.15% on Monday, after data showed the U.S. manufacturing sector expanded at a slower pace in July than in the previous month.
The spread of the delta coronavirus variant was also a concern for investors. The seven-day average of daily coronavirus cases in the U.S. reached 72,790 on Friday, surpassing the peak seen last summer when the nation didn’t have an authorized Covid-19 vaccine, according to data compiled by the Centers for Disease Control and Prevention.
In addition, Federal Reserve Governor Christopher Waller told CNBC on Monday that the central bank could start tapering its bond purchases as early as October.
Fed Governor Michelle Bowman is due to speak at a research seminar sponsored by the central bank’s board of governors on working toward an inclusive labor market recovery, at 2 p.m. on Tuesday.
On the data front, the August IBD/TIPP economic optimism index is due out at 10 a.m. ET on Tuesday. June factory orders data is also set to be released at 10 a.m. ET.
An auction is due to be held on Tuesday for $20 billion of 42-day bills.
— CNBC’s Yun Li contributed to this market report.
