U.S. Treasury yields were fractionally higher on Monday, as investors look ahead to this week’s Federal Reserve policy meeting.
The yield on the benchmark 10-year Treasury note was just over a single basis point higher at 4.2563%, while the yield on the 30-year Treasury bond was just under a point higher at 4.3339%. Yields move inversely to prices.
Traders are waiting on this week’s Federal Reserve meeting, looking out for indicators of when policymakers will begin cutting interest rates.
Risk sentiment received a boost on Friday, after consumer data from the University of Michigan signaled resilient economic activity and cooling inflation, igniting hopes of a much-coveted “soft landing” scenario in the U.S. This came after November’s U.S. jobs report showed a surprise drop in unemployment.
The reading for November consumer inflation expectations is due at 11 a.m. ET on Monday.
Auctions will be held that same day for $75 billion of 13-week Treasury bills and $68 billion of 26-week bills, along with $50 billion of 3-year notes and $37 billion of 10-year notes.