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Treasury yields are little changed after mixed economic data

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U.S. Treasury yields remained relatively flat Tuesday as investors digested mixed economic data.

At 3:57 p.m. ET, the yield on the 10-year Treasury was up over 3 basis points at 4.217%. The 2-year Treasury was last down nearly 2 basis points to 4.946%.

Yields and prices move in opposite directions. One basis point equals 0.01%.

July's retail sales figures came in higher than expected, indicating strength in consumer spending. The advanced retail sales report showed a 0.7% month-over-month increase. Meanwhile, economists polled by Dow Jones had estimated a 0.4% increase.

Meanwhile, manufacturing area in the New York area tumbled during August. The New York Fed's Empire State Manufacturing Survey index fell to -19, indicating the percentage of businesses reporting expansion against contraction. That came in approximately 20 points below July's reading and well under the Dow Jones estimate for -1.4.

Weak economic data from China also weighed upon market sentiment. The country's industrial production and retail sales for July rose less than expected. Although the People's Bank of China cut interest rates to 2.5% from 2.65%, concerns about growth and the property sector remained.

On Wednesday, investors will be paying close attention to the release of the minutes from the Fed's latest meeting which may contain clues about the central banks expectations for the economy and interest rates.

Since policymakers last met in July, there have been mixed messages about whether there will be further rate hikes to lower inflation and cool the economy or whether the Fed's rate-hiking campaign could end soon.

Following the Fed's July meeting, central bank chief Jerome Powell said a range of options were still on the table and interest rate decisions would depend on economic data.

The consumer price index for July published last week suggested pressures from rising prices were easing, while the producer price index came in slightly higher than expected for the month.

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