U.S. Treasury yields: investors parse fresh data [Video]

U.S. Treasury yields fell Tuesday as investors parsed fresh manufacturing data and awaited further insight into the state of the economy from reports due out later in the week.

The yield on the 10-year Treasury was down by less than 3.9 basis points to 4.584%. The yield on the 2-year Treasury was last at 4.937% after rising by 3.4 basis points.

Yields and prices have an inverted relationship. One basis point is equivalent to 0.01%.

The S&P Global Flash U.S. manufacturing PMI came in at 49.9, hitting a four-month low and down from 51.9 in March. A reading below 50 indicates an economic contraction within the sector.

“All told, then, S&P’s survey reinforces the case for thinking markets will be caught out by how quickly the economic data swing to supporting the case for reducing interest rates soon,” said Ian Shepherdson, chairman and chief economist at Pantheon Macroeconomics.

Further economic data due throughout the week could also indicate …