Markets around the world are watching the US bond market closely as Treasury yields continue to fluctuate. On Monday, the yield on the 10-year Treasury note reached 2.99 percent, its highest level since January 2014. The return flirted with the all-important psychological 3 percent mark, which, if hit, would respond to markets around the world However, Tuesday's returns fell from their highs, helping to quicken sentiment around the world, with markets in Europe and Asia largely trading higher.
Investors have recently been selling Treasuries – which has led to rising yields – in anticipation of rising inflation, which could prompt the US Federal Reserve to tighten monetary policy faster.
With fears of rising yields slipping, investors will be turning their attention to new economic data released Tuesday during the session.
At 8:30 pm ET, the Philadelphia Fed released the non-production business outlook survey, followed by the S & P / Case-Shiller House Price Index and the FHFA House Price Index at 9 pm ET. New home sales, consumer confidence and the Richmond Fed Survey of Manufacturing Activity are due to be released at 1