Treasury yields are flat as Wall Street weighs economic outlook

U.S. Treasury yields were flat on Tuesday, as investors assessed the outlook for the U.S. economy and digested the latest round of corporate earnings.

The yield on the benchmark 10-year Treasury note was flat at 3.598%, while the yield on the 2-year Treasury bond added about a basis point to 4.201%. 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 84% 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.

On the data front, March housing starts and building permits figures due at 8:30 a.m. ET. Housing starts for the month are expected to have fallen by 3.4% to 1.40 million units, according to Dow Jones consensus estimates, while building permits are projected to drop by 4.9% to 1.45 million units.

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.