U.S. Treasury yields were little changed early on Tuesday, as investors digested jobs data and comments from Federal Reserve officials, while awaiting key inflation readings later this week.
The yield on the benchmark 10-year Treasury note slipped 14 basis points to 1.3152%, while the yield on the 30-year Treasury bond hovered around the flatline at 1.9617%. Yields move inversely to prices.
Yields rose on Monday after job openings jumped to a record high 10.1 million in June as hiring also increased, according to the latest figures from the Labor Department. Supply shortages have weighed on the labor market recovery even as the broader economy rebounds.
Employment data is one of the key economic indicators being used by the Federal Reserve to determine when it will start tightening monetary policy, along with inflation readings.
The consumer price index and the producer price index, both of which measure inflation, are scheduled to come out Wednesday and Thursday, respectively.
On Monday, two Fed officials indicated that the pace of the U.S. recovery and elevated inflation could prompt discussion about the central bank starting interest rate hikes.
Meanwhile, the U.S. Senate will vote Tuesday on the $1 trillion bipartisan infrastructure bill, a key priority for President Joe Biden, before beginning a fresh debate on a $3.5 billion expansion of social programs.
On the data front, second-quarter preliminary labor costs and nonfarm productivity readings are due at 8:30 a.m. ET.
Treasury auctions will be held for $34 billion of 52-week bills and $58 billion of 3-year notes.
– CNBC’s Vicky McKeever and Tanaya Macheel contributed to this report.