10-year Treasury yield dips as investors closely monitor economic data

Treasury yields slipped on Wednesday as investors looked ahead to a fresh batch of economic data and considered the outlook for the U.S. economy.

The yield on the benchmark 10-year Treasury note was 4 basis points higher at 4.274%, while the yield on the 2-year Treasury note was flat at 4.4%.

Yields and prices move in opposite directions, and one basis point is equivalent to 0.01%.

Data released Wednesday morning showed that U.S. manufacturing orders came in weaker than expected.

The U.S. PMI flash manufacturing output index fell to 49.5 in July, unexpectedly slipping into contraction territory as new orders, production and inventories declined. Economists surveyed by Dow Jones had forecast a reading of 51.5.

A Wednesday report also showed that new home sales came in lighter than expected for the month of June.

Later in the week, a reading of second-quarter gross domestic product and June’s personal consumption expenditures price index are expected.

The latter is the Federal Reserve’s preferred inflation gauge, and could therefore inform guidance issued by the U.S. central bank about the outlook for monetary policy when it meets next week.

— CNBC’s Samantha Subin and Sophie Kiderlin contributed to this report.