U.S. Treasury yields move lower as investors await housing data

U.S. Treasury yields inched lower on Tuesday as investors awaited further economic data and continued to weigh the inflationary backdrop ahead of the Federal Reserve's interest rate decision next week.

The benchmark 10-year Treasury yield was down more than 2 basis points at 5.115%, while the 30-year Treasury bond fell more than 3 basis points to 5.435%. Meanwhile, the 2-year Treasury note yield was up more than 1 basis point at 4.774%.

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

Investors will parse housing starts and monthly pending home sales data for September, due later on Tuesday morning.

Weekly initial jobless claims will be released on Thursday, and the S&P Global Composite PMI Flash will be out on Friday.

Investors are anticipating the Fed's next interest rate decision, due next week. The latest figures for the Fed's preferred inflation gauge, the personal consumption expenditures index, will also be released.

Traders are now pricing in an 82% chance of the Fed holding interest rates steady, according to the CME FedWatch Tool.