Home prices, meanwhile, rose 6.8% in November compared with the same time last year, and slowed from the 8.7% gain in October, according the S&P CoreLogic Case-Shiller Home Price composite index of 20 metropolitan areas. Rising wages and housing costs have been chief concerns of the Federal Reserve in its battle with inflation. The central bank is widely expected to raise benchmark interest rates by 25 basis points to a range of 4.50% and 4.75% at the conclusion of its policy meeting on Wednesday.
"All eyes are on the Fed this week and the Street's expectations for a 25 basis point rate hike. Investors will keenly listen to Chairman Powell's comments for any indication of the Fed wavering from its aggressively hawkish stance," said Craig Johnson, chief market technician at Piper Sandler.
Consumer confidence, meanwhile, came in at 107.1 in January, below both consensus estimates of 109 and the revised December reading of 109, according to the Conference Board.
Tuesday's economic releases offered a "mixed round of information concerning the mindset of the consumer to start the new year, and one that demonstrates the headwinds facing households at this stage," said Benjamin Jeffery, a strategist on the U.S. Rates Strategy Team at BMO Capital Markets.
The yield on 10-year Treasury notes was down 1.5 basis points to 3.536%. Yields had been down as much as 5.3 basis points earlier in the session. The yield on the 30-year Treasury bond was up 1.2 basis points to 3.672%. Yields had dipped 3 basis points earlier in the day.
A closely watched part of the U.S. Treasury yield curve
measuring the gap between yields on two- and 10-year Treasury
notes , seen as an indicator of economic
expectations, was at -68.6 basis points.
The two-year U.S. Treasury yield, which
typically moves in step with interest rate expectations, was
down 3.5 basis points at 4.226%.
January 31 Tuesday 10:22AM New York / 1522 GMT
Price Current Net
Yield % Change
(bps)
Three-month bills 4.58 4.6986 0.038
Six-month bills 4.66 4.8387 -0.010
Two-year note 99-208/256 4.2238 -0.037
Three-year note 99-216/256 3.931 -0.037
Five-year note 99-82/256 3.65 -0.033
Seven-year note 99-96/256 3.6018 -0.025
10-year note 104-204/256 3.5401 -0.011
20-year bond 102-176/256 3.8051 0.014
30-year bond 105-216/256 3.6753 0.015
DOLLAR SWAP SPREADS
Last (bps) Net
Change
(bps)
U.S. 2-year dollar swap 27.50 -0.25
spread
U.S. 3-year dollar swap 13.75 -0.75
spread
U.S. 5-year dollar swap 5.25 -0.75
spread
U.S. 10-year dollar swap -2.50 -0.25
spread
U.S. 30-year dollar swap -39.25 -1.50
spread
(Reporting by David Randall;
Editing by Bernadette Baum and Andrea Ricci)
