Treasuries Close Flat After Early Sell-Off - US Treasury Yields Hold Steady

U.S. Treasuries ended Tuesday roughly flat after recovering from an early session sell-off, as investors digested mixed economic data and awaited further clues on Federal Reserve policy. Benchmark 10-year yields held near 4.35%, with minimal movement across the curve amid cautious positioning ahead of upcoming inflation reports. The yield on the 2-year note edged up slightly to 4.80%, reflecting persistent expectations for a prolonged high-rate environment. The Treasury market’s muted response followed a brief rally in equities and a dip in risk appetite, with the S&P 500 down 0.3% and the VIX volatility index rising to 17.4. Trading volume remained light, suggesting limited conviction among fixed-income players. The Fed's January meeting minutes, released earlier in the week, emphasized that officials remain focused on reducing inflation without triggering a recession, reinforcing the status quo in monetary policy.