The U.S. 10-year Treasury yield was lower Tuesday as investors digested the most recent housing data that came in stronger than expected.
The 10-year Treasury yield traded 5 basis points lower at 3.719%. The 2-year Treasury yield fell 4 basis points at 4.683%.
Markets were closed Monday for the Juneteenth holiday.
May housing starts beat expectations. There were 1.63 million starts last month, according to the Census Bureau on Tuesday. Economists polled by Dow Jones were expecting 1.39 million housing starts. Meanwhile, the U.S. saw 1.49 million new building permits in May, higher than the forecasted 1.42 million.
Investors awaited comments from Fed Chairman Jerome Powell for fresh insight into the pace of future interest rate hikes. The central bank leader is expected to testify before Congress on Wednesday and Thursday.
At its latest monetary policy meeting last week, the central bank left rates unchanged for the first time since March 2022. However, in guidance issued alongside the rate decision, Fed officials indicated that they are expecting to hike rates twice more this year, by 25 basis points each time.
They also expect interest rates to be higher than previously anticipated throughout 2024 and 2025.
