U.S. Treasury yields slid Tuesday as markets reopened after the Labor Day holiday and investors evaluated economic data.
The yield on the 10-year Treasury yield was last trading at 3.844% after dropping close to 7 basis points. The 2-year Treasury yield was last down around 5 basis points at 3.877%.
Yields and prices move in opposite directions. One basis point equals 0.01%.
Investors weighed the state of the economy and considered the outlook for interest rates as they looked to key labor market data due this week.
Two readings of manufacturing production released Tuesday showed signs of weakness, bolstering concerns around slowing growth within the U.S. economy. S&P Global's showed a decline from July to August, while the Institute for Supply Management's came in below the Dow Jones consensus estimate.
Job openings figures for July, ADP's private payrolls data for August and the August jobs report, which includes nonfarm payrolls and the latest unemployment rate, are all due later this week.
Investors will be watching the data closely for fresh signals about the economic outlook. Last month, the July jobs report raised fears about a recession and questions about whether the Federal Reserve should have already cut interest rates, sparking market volatility.
Money Report
Recession concerns have eased since then, with the second-quarter gross domestic product last week being revised higher from the initial 2.8% reading to 3% growth.
Markets are firmly pricing in an interest rate cut from the Fed when it next meets later this month on Sept. 18. CME Group's FedWatch Tool indicates that traders are pricing in an around 61% chance of a 25-basis-point cut, and a 39% probability of a 50-basis-point reduction.
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