Traders watch prices in the Ten-Year Treasury Note options pit at the CME Group.
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U.S. Treasury yields rose slightly Monday as investors assessed the outlook for the U.S. economy after last week’s batch of economic data.
The 10-year Treasury yield was up nearly 2 basis points at 3.541%. The 2-year Treasury yield climbed more than 4 basis points to 4.148%. Yields and prices have an inverted relationship and one basis point equals 0.01%.
The 2-year Treasury yield breached the key 4% level on Friday even though data published throughout the week indicated that inflationary pressures could be easing.
That included March’s consumer inflation report, which reflected a smaller than expected increase of 0.1% on a monthly basis. Also last week, the latest producer price index reading showed that wholesale prices fell by 0.5% in March.
That prompted many investors to hope that a pause of Federal Reserve interest rate hikes was imminent. The central bank had previously hinted that if data suggested a cooling of the economy, rate increases may be halted shortly.
However, speaking at the Graybar National Training Conference on Friday, Federal Reserve Governor Christopher Waller said inflation remained too high and monetary policy needed to be tightened further.
