U.S Treasury yields declined on Monday as investors assessed the state of the economy after the collapse of Silicon Valley Bank and looked to key inflation data due this week.
At 5:34 a.m. ET, the yield on the 10-year Treasury was down by close to 14 basis points to 3.5562%. The yield on the 2-year Treasury was last trading at 4.2739% after declining by over 31 basis points. At the end of last week, the yield had fallen at a pace last seen during the global financial crisis in 2008.
Yields and prices move in opposite directions and one basis point equals 0.01%.
Treasurys
| TICKER | COMPANY | YIELD | CHANGE | %CHANGE |
|---|---|---|---|---|
| US1M | U.S. 1 Month Treasury | 4.571% | -0.153 | 0.00% |
| US3M | U.S. 3 Month Treasury | 4.742% | -0.213 | 0.00% |
| US6M | U.S. 6 Month Treasury | 4.873% | -0.256 | 0.00% |
| US1Y | U.S. 1 Year Treasury | 4.599% | -0.277 | 0.00% |
| US2Y | U.S. 2 Year Treasury | 4.289% | -0.299 | 0.00% |
| US10Y | U.S. 10 Year Treasury | 3.558% | -0.137 | 0.00% |
| US30Y | U.S. 30 Year Treasury | 3.649% | -0.051 | 0.00% |
Investors processed the fallout from the collapse of Silicon Valley Bank and considered its impact on the economy. Regulators had taken over the bank on Friday after mass withdrawals on Thursday led to a bank run.
On Sunday, regulators announced they would backstop Silicon Valley Bank’s depositors.
As fears about contagion across the banking sector spiked, many investors looked to government bonds and other traditionally safer assets.
Investors also braced themselves for a series of key inflation data due this week. February’s consumer inflation report and the latest reading of the core inflation rate are expected Tuesday, followed by wholesale inflation data on Wednesday.
That comes after Federal Reserve Chairman Jerome Powell indicated last week that the central bank’s upcoming interest rate decision would be data-dependent. Powell also suggested that interest rates would likely go higher than expected as the Fed’s battle with inflation continues.
Many investors are now expecting the central bank to hike rates by 50 basis points at its next meeting and will be looking to this week’s inflation data for further hints about upcoming monetary policy decisions.
No key economic data is expected on Monday.
