U.S. Treasury yields declined on Monday as investors looked ahead to a week of fresh economic data that could provide insights into the state of the economy and remarks from Federal Reserve officials.
At 5:38 a.m. ET, the yield on the 10-year Treasury was down by over 4 basis points at 3.694%. The 2-year Treasury was trading more than 4 basis points lower at 4.707%.
Yields and prices move in opposite directions. One basis point equals 0.01%.
Treasurys
| TICKER | COMPANY | YIELD | CHANGE | %CHANGE |
|---|---|---|---|---|
| US1M | U.S. 1 Month Treasury | 5.162% | +0.051 | 0.00% |
| US3M | U.S. 3 Month Treasury | 5.348% | +0.044 | 0.00% |
| US6M | U.S. 6 Month Treasury | 5.449% | +0.039 | 0.00% |
| US1Y | U.S. 1 Year Treasury | 5.294% | +0.038 | 0.00% |
| US2Y | U.S. 2 Year Treasury | 4.705% | -0.045 | 0.00% |
| US10Y | U.S. 10 Year Treasury | 3.688% | -0.051 | 0.00% |
| US30Y | U.S. 30 Year Treasury | 3.776% | -0.044 | 0.00% |
Those moves come after an attempted mutiny against the Russian military over the weekend by the Wagner Group, a private militia led by Yevgeny Prigozhin. Wagner took control of Rostov and moved within 200 kilometers of Moscow before the rebellion was over.
Investors also considered what could be next for the U.S. economy as they looked ahead to several key economic reports this week.
This includes May’s durable goods orders data on Tuesday, alongside several key housing sector reports throughout the week. On Friday, May’s personal consumption expenditure price index report, which is the Fed’s favored inflation gauge, is due.
Federal Reserve Chairman Jerome Powell said last week that inflation remained too high and the central bank’s battle to bring it down was far from over. Speaking before Congress, Powell indicated that further interest rates hikes were therefore likely, a point that was also echoed by various other Fed officials.
Many investors are now considering when these rate hikes may be coming and how high interest rates will ultimately go. According to the CME Group FedWatch tool, markets are currently pricing in an almost 72% chance of a rate hike being announced at the Fed’s next meeting in July.
Several Fed officials are slated to speak this week, including Powell on Wednesday and Thursday. Investors will be scanning the comments for fresh details about the central bank’s monetary policy plans.
No major economic data is expected on Monday.
