Treasury Yields Hold Flat as Fed Weighs AI Infrastructure Inflation Risks

U.S. Treasury yields traded little changed on Tuesday as bond investors weighed remarks from Federal Reserve policymakers and tracked volatile energy headlines, according to reporting by CNBC Business .

The benchmark 10-year Treasury yield slipped more than 1 basis point to 4.951%, while the 2-year yield fell more than 1 basis point to 4.741%. The 30-year Treasury yield dipped less than 1 basis point to 5.287%.

Bond markets took cues from Chicago Fed President Austan Goolsbee, who spoke in London about persistent price pressures. Goolsbee noted that he is "especially attuned to elevated inflation in service-sector industries, and to any evidence that AI data center construction is spilling out of its own lane and raising aggregate output beyond what the economy can absorb." He warned that "if demand overheats, there is no ambiguity about how the Fed needs to respond," pointing out that forecasters have repeatedly pushed back the expected peak in inflation from late 2025 into 2027.

Investors are also awaiting a Wednesday address in Chicago by Federal Reserve Governor Michael S. Barr on housing affordability.

Oil markets provided additional macroeconomic backdrop on Tuesday. Brent crude futures fell 1% to around $98 a barrel, while West Texas Intermediate dipped 1% to $94 a barrel. Energy markets responded to statements by President Donald Trump regarding diplomatic talks with Iran, alongside reports that Iran offered to reopen the Strait of Hormuz within seven days and that Saudi Arabia may restart its East-West pipeline this week.