On Tuesday morning, lower energy prices dragged bond yields down as investors awaited a series of major economic data releases this week, including the latest US inflation figures.

The 10-year US Treasury yield, a key benchmark for mortgage, auto loan, and credit card rates, dropped more than 5 basis points to 5.1937%. The long-end 30-year Treasury yield, which is sensitive to geopolitical events, fell 4 basis points to 5.5524%. The 2-year Treasury yield, which closely tracks the Federal Reserve's short-term rate decisions, declined more than 2 basis points to 4.7679%. One basis point equals 0.01%; bond yields and prices move in opposite directions. The US Treasury market was closed Monday for Columbus Day and resumed trading on Tuesday.

The decline in borrowing costs came against the backdrop of a sharp drop in oil prices on Tuesday. After the US brokered a so-called "energy ceasefire" between Russia and Ukraine, the market continued to assess the possibility of Russian diesel flowing into the global energy market. As of 3:50 am US Eastern Time, November-delivery West Texas Intermediate (WTI) crude futures fell 1.49% to $92.34 per barrel.

Investors are preparing for a dense slate of US economic data this week, which will provide a clearer picture of the US inflation situation and interest rate trajectory. The market consensus expects the September US CPI, due Wednesday, to show a 3.7% year-over-year increase, up from 3.4% in August; core CPI, which excludes food and energy, is expected to rise to 2.5% year-over-year from 2.4% in August. After the CPI, September producer price index (PPI) and retail sales data will be released on Thursday.