U.S. Treasury yields dipped on Tuesday as investors awaited the Federal Reserve July meeting minutes and its annual Jackson Hole symposium later in the week.
The 2-year Treasury yield fell 2 basis points to 3.75%. The benchmark 10-year note yield dipped 2 basis points to 4.32%.
The Fed will release minutes from its July 29-30 policy meeting, where rates were left unchanged, at 2 p.m. ET on Wednesday.
Investors are also looking to Fed Chair Jerome Powell for signals on the path of monetary policy, as global central bankers gather in Jackson Hole, Wyoming, for the Fed’s annual economic symposium from Thursday to Saturday. Powell is slated to give a speech on Friday.
“Fed Chairman Powell is likely to continue emphasizing that the September FOMC rate decision will hinge on employment and inflation data in August,” Eastspring Investments said in a note.
This week’s data calendar is lighter following last week’s spotlight on inflation and retail sales.
Housing starts data released Tuesday for the month of July totaled a seasonally adjusted annual rate of 1.428 million, up 5.2% from the upwardly revised June figure and well above the Dow Jones consensus estimate for 1.29 million, according to Commerce Department figures. The figures showed, however, that the total of 1.354 million was 2.8% off the June pace and less than the 1.39 million estimate.
Investors this week are monitoring earnings from top U.S. retailers for clues on consumer strength. Home Depot on Tuesday reported weaker-than-expected second-quarter earnings but maintained its full-year outlook. Reports from Lowe’s, Walmart and Target will be released later this week.
