At around 05:00 a.m. ET, the yield on the benchmark 10-year Treasury note, which moves inversely to price, was lower at around 1.8258%, while the yield on the 30-year Treasury bond was also lower at around 2.2971%.
Market focus is largely attuned to the threat of a military response to attacks on two critical oil refineries in Saudi Arabia over the weekend.
The attacks wiped out 5.7 million barrels per day of daily crude production — or 50% of the kingdom’s oil output. It has raised the prospect of a major supply shock in a market that had been focused on demand concerns in recent months.
Elsewhere, investors are likely to closely monitor the Federal Reserve’s two-day meeting this week. The U.S. central bank is expected to cut interest rates at the conclusion of its meeting on Wednesday.
On the data front, a business leaders survey for September will be released at around 8:30 a.m. ET. Industrial production figures for August, capacity utilization data for August and the housing market index for September will all follow slightly later in the session.
There are no major Treasury bond auctions scheduled on Tuesday.