U.S. Treasury yields hold steady as investors await Fed minutes

U.S. Treasury yields were broadly flat on Tuesday morning after reaching fresh highs in the previous session, as investors looked ahead to the release of minutes from the Federal Reserve's last meeting.

The benchmark 10-year Treasury was last trading below the flatline at 5.302%, after reaching its highest level since April 2002 on Monday. Similarly, the 30-year Treasury bond rose less than a basis point to 5.665%, after also rising to levels not seen since May 2002. The 2-Year Treasury note yield was down 1 basis point to 4.818%.

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

Treasury yields once again 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.