US stocks rose on Tuesday and bond yields fell, as investors cut expectations of near-term increases in interest rates.
The benchmark S&P 500 ended the day up 0.5 per cent, while the tech-heavy Nasdaq Composite rose 0.6 per cent.
Meanwhile, Treasury yields fell across maturities, reversing some of last week’s dramatic move that sent prices lower and yields to 16-year highs.
On Tuesday, the two-year yield, which moves with interest rate expectations, fell 0.13 percentage point to 4.96 per cent. The benchmark 10-year yield fell 0.15 percentage points to 4.65 per cent.
Investors cut expectations that the Federal Reserve would increase interest rates again this year after comments from officials this week.
