U.S. Treasury yields were mixed on Monday as investors digested the latest inflation data, which could affect Federal Reserve monetary policy, and considered the outlook for the economy.
At 5:33 a.m. ET, the 10-year Treasury yield was up by 1 basis point at 3.983%. The 2-year Treasury was down by less than a basis point at 4.893%.
Yields and prices move in opposite directions. One basis point equals 0.01%.
TREASURYS
| TICKER | COMPANY | YIELD | CHANGE | %CHANGE |
|---|---|---|---|---|
| U.S. 1 Month Treasury | 5.403 | 0.031 | 0 | |
| U.S. 1 Year Treasury | 5.411 | 0.024 | 0 | |
| U.S. 10 Year Treasury | 3.987 | 0.018 | 0 | |
| U.S. 2 Year Treasury | 4.893 | -0.004 | 0 | |
| U.S. 3 Month Treasury | 5.45 | 0.018 | 0 | |
| U.S. 30 Year Treasury | 4.037 | 0.007 | 0 | |
| U.S. 6 Month Treasury | 5.583 | 0.076 | 0 |
Investors considered what could be next for inflation and Fed monetary policy, especially regarding interest rates.
That comes after Friday’s reading of the personal consumption expenditures price index — the Fed’s favored inflation gauge — suggested that inflation is cooling. On a monthly basis, the PCE was in line with expectations from economists previously surveyed by Dow Jones at 0.2% for June.
The core PCE, which excludes food and energy, was up by 4.1% on an annual basis, just below the anticipated 4.2%, marking the lowest level since September 2021.
Many investors took that as a sign that the Fed may be able to pause or end its interest rate-hiking campaign as soon as elevated rates appear to be working to cool the economy and ease inflation.
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Source: www.cnbc.com
ENB
Sandstone Group
