US Treasuries Edge Lower as Traders Await CPI Inflation Reading

US Treasuries slipped Tuesday as traders looked to December’s inflation data for clues on how quickly the Federal Reserve may resume lowering borrowing costs this year.

The yield curve steepened as longer-dated notes underperformed, with the 30-year yield rising three basis points to 4.85% ahead of an auction that will see the US Treasury offer $22 billion of bonds in this maturity later Tuesday. The two-year yield was one basis point higher at 3.55%.