Treasury yields dipped on Tuesday morning, as investor focus remained on a key jobs report due out later in the week.
The yield on the benchmark 10-year Treasury note fell less than a basis point to 1.277% at 3:45 a.m. ET. The yield on the 30-year Treasury bond gave up less than a basis point, falling to 1.89%. Yields move inversely to prices and 1 basis point is equal to 0.01%.
The August nonfarm payroll report is due to be released at 8:30 a.m. ET on Friday. Economists polled by Dow Jones expect 750,000 jobs were created in August and the unemployment rate fell to 5.2%.
The Federal Reserve is monitoring the recovery in the labor market to gauge when it should tighten monetary policy.
Fed Chairman Jerome Powell indicated in a speech at the central bank’s annual Jackson Hole symposium on Friday that it would likely begin to taper bond purchases before the end of the year. However, Powell said interest rate hikes were not imminent as there was still “much ground to cover” before the economy hits full employment.
In terms of data due out on Tuesday, the June S&P/Case-Shiller Home Price index is due to be released at 9 a.m. ET. The August CB consumer confidence survey is then set to come out at 10 a.m. ET.
An auction will be held on Tuesday for $45 billion of 21-day bills.