Uncertainty about interest rate cuts continues to drive down treasury yields.

On Tuesday, U.S. Treasury yields decreased due to uncertainty about the future of interest rates and when rate cuts might commence.

The yield dropped by more than 7 basis points to 4.397%, while the dropped by about 8 basis points to 4.087%.

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

The Federal Reserve's timeline for interest rate cuts has been a source of worry for investors, as they fear that high rates could lead to a recession in the U.S. economy.

Recent comments from Fed Chair Jerome Powell and strong economic data have dampened traders' hopes for rate cuts as soon as March.

Powell stated that rate cuts are likely to occur this year, but the likelihood of them happening in March is low. He emphasized this point over the weekend, adding that the pace of rate cuts is likely to be slower than what markets anticipate.

According to CME Group's FedWatch tool, there was a 19.5% chance that markets would last price in a rate cut occurring then.