Treasury yields bounced back on Tuesday as investors closely monitored a reversal of the previous day’s global market sell-off.

The yield on the benchmark 10-year Treasury note traded more than 5 basis points higher at 3.8371% at 5:12 a.m. ET. It comes after the yield on the 10-year Treasury note on Monday fell to its lowest level since June 2023 .

The yield on the 2-year Treasury note traded over 7 points higher at 3.9627%. Yields and prices move in opposite directions, and one basis point is equivalent to 0.01%.

Global markets appeared on track to shake off Monday’s dramatic downturn .

U.S. stocks kicked off the month sharply lower, as fresh data prompted fears of a worsening economic outlook. The weaker-than-expected data led investors to worry that the Federal Reserve may be behind the curve in cutting interest rates to fend off a recession .

Policymakers at the U.S. central bank on Wednesday held interest rates steady , although Fed Chair Jerome Powell gave investors some hope by signaling a September rate cut is on the table.

“I’m more in the camp that says that this is a big summer thunderstorm, but this is not really now the start of something fundamentally changing in the real economy,” Carsten Brzeski, global head of macro for ING Research, told CNBC’s “ Street Signs Europe ” on Tuesday.

“I think what we are seeing right now is more of a kind of reality check for markets, especially when it comes to AI, and I hope and think we will have somewhat calmer waters ahead now.”

Brzeski said he expects the Fed to move forward with a 50 basis point interest rate cut next month in order to bolster market confidence.

“I don’t believe in these emergency meetings. For that, the situation is not severe enough, but I think it would be a good signal by Jerome Powell to start a rate cut cycle with 50 basis points because this would be really be symbolic,” he added.

U.S. trade deficit figures for June will be published Tuesday at around 8:30 a.m. ET.