Treasury yields were steady Monday as traders anticipate the Federal Reserve moving forward with a rate cut later this week.
The yield on the benchmark 10-year Treasury was down marginally at 4.059. On Friday, it had rebounded by 5 basis points, after touching the 4% level earlier in the week when data prints showed prices were rising while the labor market was weaker than anticipated.
The yields on the 2-year and 30-year Treasurys were also little changed on Monday, trading at 3.551% and 4.679%, respectively.
One basis point equals 0.01%, and bond yields and prices move in opposite directions.
Members of the interest-rate setting panel of the Federal Reserve are expected to meet for two days this week before revealing their decision on Sept. 17. The U.S. central bank is widely expected to cut interest rates, with the market pricing in a 25 basis point reduction. The CME Group’s FedWatch data also points towards a similar cut in October and December.
Ahead of the Fed meeting, on Sept. 16, investors will also be examining data on import and export prices, as well as retail sales figures.
Last week, data showed that the U.S. consumer price index rose to 2.9% on an annual basis in August, with the CPI notching its biggest monthly jump since January. Annual core inflation — more closely watched by Fed officials — rose to 3.1%.
The Federal Reserve’s headline inflation target is 2%.
Meanwhile, the Labor Department reported a higher-than-expected rise in weekly jobless claims, with unemployment compensation filings hitting their highest level since October 2021.
— CNBC’s Sean Conlon contributed reporting.
