US Treasury yields rose on Monday as the trading week kicked off and investors weighed the inflation outlook and waited for key economic data.
5:22 a.m. ET benchmark yields 10 year government bond The note was up almost 3 basis points to 3.599%.of 2 year government bond After gaining about 2 basis points, it traded at around 4.28%.
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Yields and prices are inversely related, with 1 basis point equaling 0.01%.
Investors continued to assess the outlook for inflation and how it might affect the Fed’s next interest rate decision. Central banks are due to meet on Jan. 31 and he’s on Feb. 1, and investors are wondering if rate hikes will slow further as his Fed’s battle against persistently high inflation continues. I am considering.
The central bank raised rates by 50 basis points at its last December meeting. This is a slight slowdown from the 75 basis points of rate hikes at the last four meetings.
On Friday, the December nonfarm payrolls report showed wages were below expectations throughout the month, suggesting inflationary pressures may ease. The report also showed that the economy added 233,000 jobs in December.
Investors are hoping for more clarity on inflation this week, as the US Consumer Price Index for December is released on Thursday.
A few smaller data points are expected before that, including Monday’s Consumer Inflation Expectations Report. Several Fed officials are due to speak.
