The 10-year Treasury yield decreases after surpassing 4% in the previous session.

The 10-year Treasury yield decreases after surpassing 4% in the previous session.
The 10-year Treasury yield decreases after surpassing 4% in the previous session.

Early Tuesday, U.S. Treasury yields were slightly lower, reversing course after hitting a 10-year high during the previous session.

While the yield on the was 5 basis points lower at 3.949%, the yield on the was down by over two basis points at 3.998%.

Yields move inversely to prices. One basis point equals 0.01%.

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Despite the start of a Federal Reserve rate-cutting campaign last month, the 10-year jumped above 4% on Monday amid stronger labor market readings.

The 10-year yield increased by more than 4 basis points to 4.024%, reaching its highest level since early August and significantly higher than its 2024 low of around 3.58%, which was reached just over a month ago. Additionally, the yield on the 10-year bond increased by nearly 6 basis points to 3.989%.

On Tuesday, policymaker Adriana Kugler will provide fresh comments on the path for interest rates, which investors are eagerly anticipating.

— CNBC's John Melloy and Lisa Kailai Han contributed to this report.

by Karen Gilchrist

Markets