Investors wait for inflation data while Treasury yields remain unchanged.

On Tuesday, treasury yields remained relatively stable as investors awaited crucial inflation data while grappling with economic uncertainty in the United States.

The yield on the 30-year Treasury bond increased by less than one basis point to 3.9150% at 2:49 a.m. ET. Prior to this, the yield had been less than one basis point higher at 4.0188%.

Prices and yields move in opposite directions, with one basis point equal to 0.01%.

This week, two important inflation reports are due, including the producer price index on Tuesday. According to a Dow Jones consensus estimate, the PPI is predicted to show a 0.2% increase in July, which aligns with June's reading.

On Wednesday, the consumer price index will be released after the wholesale inflation figures.

Both sets of data will be closely monitored by investors for indications of the economy's condition, particularly amidst recent market fluctuations caused by worries about a possible U.S. recession.

The Federal Reserve may cut interest rates in September based on inflation and labor market developments, as indicated at its July meeting.

Amidst recent market instability and economic unpredictability, there has been debate about whether the Fed should have already begun lowering interest rates to prevent a harsh economic slowdown. While markets anticipate a September rate reduction, traders are divided on the magnitude of the cut they expect.