Economic outlook causes investors to lower treasury yields.

On Tuesday, the U.S. Treasury yields decreased as investors processed positive remarks from a Federal Reserve official and anticipated the release of information that could offer insights into the economic forecast.

The yield decreased by nearly 4 basis points to 4.35%.

Yields fall when prices rise, and one basis point equals 0.01%.

Earlier Tuesday, Fed Governor Christopher Waller's comments raised hopes that the central bank would stop raising interest rates to control inflation. Waller stated that monetary policy is currently in a good position to slow the economy and lower inflation.

The Federal Open Market Committee's policy meeting on Dec. 12-13 is expected to keep its key lending rate steady, but questions remain about how long rates will remain elevated and when they might be cut, particularly as the economy slows and recessionary concerns arise.

Consumer confidence improved in November, although most still expect a future recession, according to data released Tuesday. The Conference Board's index rose to 102 for the month, higher than a downwardly revised 99.1 from October and ahead of the Dow Jones estimate for 101.

Economic reports this week could influence upcoming monetary policy decisions from the Federal Reserve, as investors also anticipated their release.

The personal consumption expenditure price index, a crucial data point for the Fed, is predicted to provide fresh inflation insights on Thursday.