Treasury yields inch lower as Wall Street weighs economic outlook

U.S. Treasury yields dipped slightly 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 fell about 2 basis points to 3.572%, while the yield on the 2-year Treasury bond dipped about 3 basis points to 4.161%. Yields move inversely to prices.

Corporate earnings season continued with better-than-expected earnings results from both Johnson & Johnson and Bank of America. Goldman Sachs fell short on revenue estimates, dragging down shares more than 3% in the premarket.

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.

Markets are closely following economic data for a read on where the Federal Reserve might take interest rates at its next 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.