- Yields rose early on Tuesday, with investor focus this week on minutes from the Fed's last meeting, due out Wednesday.
- The number of building permits issued in April and the number of housing projects started last month in the U.S., are due out at 8:30 a.m. ET.
The 10-year U.S. Treasury yield topped 1.65% on Tuesday morning, as concerns about rising inflation remain, with focus on minutes from the Federal Reserve's latest meeting due out later this week.
The yield on the benchmark 10-year Treasury note rose to 1.651% at 4:20 a.m. ET. The yield on the 30-year Treasury bond climbed to 2.368%. Yields move inversely to prices.
Yields rose early on Tuesday, with investor focus this week on minutes from the Fed's last meeting, due out Wednesday. Investors will be poring over the minutes for any indications as to the Fed's view on rising inflation.
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The Fed has maintained the view that rising inflation is transitory, despite market nervousness about sustained price pressures.
Atlanta Fed President Raphael Bostic told CNBC on Monday that the central bank needed to keep its monetary policy "very strongly accommodative" in order to close the gap in unemployment.
Kokou Abgo-Bloua, global head of economics, cross-asset & quant research at Societe Generale, told CNBC's "Squawk Box Europe" on Tuesday that the firm agreed with the Fed's view that inflation was transient.
He explained that "demand-pull inflation," from pent-up consumer savings and "cost-push inflation," with companies cutting inventories to raise cash, would normalize over the next year.
Abgo-Bloua said Societe Generale was therefore expecting to see "peak inflation pressures over the next six to 12 months."
In terms of data out Tuesday, the number of building permits issued in April and the number of housing projects started last month in the U.S., are due out at 8:30 a.m. ET.
Auctions are due to be held Tuesday for $34 billion of 52-week bills and $40 billion of 42-day bills.