2-year Treasury yield inches higher as Wall Street weighs economic outlook

The yield on the 2-year Treasury note inched higher on Tuesday as investors assessed the outlook for the U.S. economy and digested a new round of corporate earnings.

The yield on the 2-year Treasury bond last rose 4 basis points to 4.226%, while the yield on the benchmark 10-year Treasury note traded flat at 3.587%. Yields move inversely to prices.

Wall Street is closely following economic data for a read on where the Federal Reserve might take interest rates at its policy meeting in early May. More than 90% of traders are calling for a 25 basis point hike at the next policy meeting, according to CME Group's FedWatch tool.

Strong economic data could signal a resilient economy and convince the central bank it has more hiking to do to temper high inflation.

Elsewhere, traders parsed through a new round of corporate earnings for insight into how corporate America is faring against a backdrop of rising rates and persistent inflation. Johnson & Johnson and Bank of America showcased better-than-expected earnings results on Tuesday, while Goldman Sachs fell short on revenue estimates.