The U.S. 10-year Treasury yield rose modestly on Tuesday as traders assessed the latest economic data and awaited the Federal Reserve's next rate decision.
The yield on the 10-year Treasury was up about 3 points at 4.909%. The 2-year Treasury yield was trading more than 3 basis points higher at 5.071%.
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Yields and prices move in opposite directions. One basis point equals 0.01%.
The employment cost index, a measure of total compensation costs for U.S. nongovernment workers, rose slightly faster than expected in the third quarter, the Labor Department said Tuesday. It increased 1.1%, more than the 1% increase in the prior reading.
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The Fed is set to release its latest interest rate decision on Wednesday. Markets are widely expecting the Fed to keep rates unchanged and are hoping for hints about whether it's likely done raising rates from guidance released alongside the rate decision and Fed Chairman Jerome Powell's post-meeting press conference.
Several policymakers have said they believe rates won't have to go any higher in recent weeks, often citing tighter financial conditions brought on by higher Treasury yields as a key factor. Higher yields are often associated with an easing economy.
Investors also assessed the state of the economy after the U.S. Treasury shared its borrowing plans for the final three months of 2022. The Treasury is aiming to borrow $776 billion, which is below the previously expected amount.
Money Report
Elsewhere on Tuesday, the Bank of Japan announced it would keep interest rates unchanged but make its yield curve control policy more flexible.
— CNBC's Jeff Cox contributed to this report.
