US 10-Year Yield Inches Down

The yield on the 10-year US Treasury note eased toward the 4.3% mark on Tuesday after 10bps of increases in the last three sessions, as markets continued to assess the distribution on the rate outlook by the Federal Reserve.

Minutes from the FOMC's last meeting is set to specify the extent to which members are heading to a slowdown in the labor market after two policymakers dissented to rate cuts last month.

Still, the latest economic data challenged the view that the resumption of rate cuts should be aggressive, with producer inflation surpassing expectations by a wide margin, while retail sales were stronger than expected.

Still, soft earnings results by the first batch of major retailers weighed on yields.

While markets continued to expect a 25bps rate cut in the Fed's upcoming September meeting, rate futures showed lower confidence over three total cuts for the rest of the year.