Treasury yields inch higher as investors consider the state of the economy

U.S. Treasury yields were slightly higher on Wednesday as investors weighed economic data and considered the state of the economy.

The yield on the 10-year Treasury was up by 1 basis point to 3.753%. The 2-year Treasury yield was last at 3.533% after rising by just over one basis point.

Yields and prices move in opposite directions. One basis point equals 0.01%.

Investor attention is refocusing on the state of the U.S. economy after the Federal Reserve announced the hotly anticipated start of its interest rate cuts last week. Economic data points will therefore be watched closely in the coming days and weeks as concerns about a potential slowdown of the economy linger.

Data released Tuesday showed that consumer confidence fell to its lowest level in over three years in September, coming in at 98.7. That is down from 105.6 in August and below the consensus Dow Jones estimate of 104.

On Wednesday, new home sales figures for August are expected, before durable goods orders data, weekly initial jobless claims, and a final second-quarter gross domestic product reading are slated for Thursday.

Later this week, investors will also hear from various Fed officials including Chairman Jerome Powell. They will be watching closely for any new hints about the outlook for monetary policy and the Fed’s expectations for the economy.

At the end of the week, key economic data in form of the latest personal consumption expenditures price index is also set to be published. The PCE is the Fed’s favored inflation gauge.