Treasury yields fall as oil prices slide

U.S. Treasury yields were lower on Tuesday, easing from multi-decade highs, as oil prices pulled back. Investors also looked ahead to the release of minutes from the Federal Reserve's last meeting.

The benchmark 10-year Treasury yield was last down 3 basis points at 5.281%, after reaching its highest level since April 2002 on Monday. The 30-year Treasury yield was down by just under 3 basis points to 5.637%, after also rising to levels not seen since May 2002. The 2-Year Treasury note yield was down by less than 2 basis points at 4.816%.

One basis point is equal to 0.01%, and yields and prices move in opposite directions.

Brent crude traded 2% lower at $98.05 per barrel. West Texas Intermediate futures shed 2.3% to $87.47.

Treasury yields once soared on Monday, with the 10-year and 30-year recording 24-year highs, after fresh data from the Institute for Supply Management showed cooling services growth.

The PMI reading rose to 54.9 in September, in line with expectations but just below August's growth, while the price index within the service ISM was up 1.4 points to 74.

Traders are now pricing in a 78% chance that the Fed will keep rates unchanged at its next meeting, according to the CME Group's FedWatch tool.

The event of the week will be the release of the FOMC minutes from its September meeting on Wednesday, which investors will parse closely for clues about future monetary policy.