The yield on the 10-year Treasury was flat Tuesday as traders digest a cooler than expected rise in wholesale prices in December, and looked toward the release of consumer price data.
The 10-year yield was around 2 basis points lower at 4.782% after hitting a fresh 14-month high in the previous session. The 2-year Treasury yield was about 4 basis points lower at 4.363%.
One basis point is equal to 0.01%. Yields and prices move in opposite directions.
The decline yields came amid a lighter-than-expected inflation reading ahead of Wednesday's consumer price index. The producer price index rose 0.2% last month, below the 0.4% estimate from economists polled by Dow Jones, helping temper some fears of fewer rate cuts in 2025.
U.S. bond yields spiked last week, after a hotter-than-expected jobs report fueled expectations for a slow pace of Federal Reserve cuts.
The central bank next meets from Jan. 28-29, where markets have priced in a more than 97% probability of a rate hold, according to CME's FedWatch tool.