U.S. Treasury yields were fractionally higher on Monday, as investors look ahead to this week’s Federal Reserve policy meeting.
The yield on the benchmark 10-year Treasury note was 3.1 basis points higher at 4.277%. The yield on the 30-year Treasury bond was 2 basis points higher at 4.35%. Yields move inversely to prices.
Traders are waiting on this week’s Federal Reserve meeting, looking out for indicators of when policymakers will begin cutting interest rates. The central bank is expected to announce its latest policy decision Wednesday.
Risk sentiment received a boost on Friday, after consumer data from the University of Michigan signaled resilient economic activity and cooling inflation, igniting hopes of a much-coveted “soft landing” scenario in the U.S. This came after November’s U.S. jobs report showed a surprise drop in unemployment.
Investors will get fresh inflation data this week, with the November consumer price index report coming out Tuesday. Economists polled by Dow Jones expect the widely followed gauge was flat month over month. Year over year, it’s expected to be up 3%, down from a 3.2% increase in October.
