Treasury yields rose slightly on Tuesday as traders digest strong U.S. manufacturing data.
Data on Tuesday showed U.S. manufacturing activity continued to rebound in August from the pandemic lows.
The Institute for Supply Management (ISM) said Tuesday its manufacturing PMI (purchasing manager index) jumped for a third straight month to a reading of 56.0 last month, the highest level since January 2019. The gauge was at 54.2 in July. Any reading above 50 indicates expansion in manufacturing.
Investors are monitoring coronavirus’ news, but also possible moves to monetary policy, after the U.S. Federal Reserve said last week it was willing to let inflation surpass the 2% threshold for some time as it worked to revamp the economy.
Furthermore, Federal Reserve Governor Lael Brainard will speak at 10 p.m. ET at an event.
There are no Treasury auctions scheduled.