US Stocks Slip as Bond Yields Reach Two-Decade High

US stocks closed slightly lower on Tuesday as government bond yields continued to rise ahead of inflation and labor market data.

The yield on the 30-year US Treasury bond hit a 20-year high at 5.6206% after reaching its highest level since June 2002.

In contrast, shorter-duration yields declined due to easing oil prices following a recovery in exports from the Middle East and comments from Federal Reserve Bank of New York President John Williams.

Williams stated that the US central bank has time to weigh data before deciding when to hike interest rates again, which led to a decline in expectations for a rate hike at the Fed's October meeting.