investors are waiting for fresh economic data

U.S. Treasury yields rose on Tuesday after economic data showed that services inflation was struggling to contain.

The 10-year treasury the yield rose more than seven basis points to 4.693%, having earlier hit an intraday high of 4.699%, its highest level since April 26. 2-year Treasury yield rose more than two basis points to 4.299%.

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

The moves came after the ISM services price index came in at 64.4 in December, down from 58.2 in November. Meanwhile, the Job Openings and Labor Turnover Survey (JOLTS) showed a higher-than-expected number of job openings.

A combination of rising prices and high job vacancies could prompt traders to abandon expectations of a rate cut by the Federal Reserve in 2025.

The private ADP payrolls report is due on Wednesday and is forecast to show that 130,000 jobs were added in December, before the Bureau of Labor Statistics’ December jobs report is expected on Friday. This will include data on nonfarm payrolls as well as the U.S. unemployment rate

Investors will be watching the data closely as it could influence their views on the potential outlook for monetary policy, particularly interest rates. This comes after the central bank suggested in December that a smaller rate cut was on the horizon ahead of its next meeting on January 28-29.

The Fed is then expected to leave rates unchanged, with traders last putting the odds of interest rates on hold at around 93%. CME Group’s FedWatch tool.

Minutes from the Fed’s December meeting are due to be released on Wednesday, and investors will be looking to them for more information on policymakers’ thinking and their expectations for the economy.