Key inflation reports cause treasury yields to slip.

On Tuesday, the 10-year Treasury yield retreated early after reaching a new 14-month high in the previous session.

The 10-year yield decreased by 1 basis point to 4.794%, while the 2-year Treasury yield also decreased by 1 basis point to 4.396%.

Yields and prices move in opposite directions, with one basis point equal to 0.01%.

The producer price index, which measures wholesale prices, will be released at 8:30 a.m. ET Tuesday. Economists surveyed by Dow Jones predict a headline reading of 0.4% and a core reading, excluding food and energy, of 0.3%.

That comes ahead of the consumer price index on Wednesday.

Last week, U.S. bond yields increased due to a surprising jobs report, which led to anticipation that the Federal Reserve would slow down the pace of interest rate cuts in 2020.

The central bank will meet from Jan. 28-29, with markets expecting a rate hold, according to CME's FedWatch tool.