Treasury yields start the week higher with focus on inflation data

Markets
  • There are no major data releases due out on Monday but a number of Fed officials are scheduled to make speeches.
  • Auctions are slated to be held on Monday for $54 billion of 13-week bills, $48 billion of 26-week bills and $56 billion of 3-year notes.

U.S. Treasury yields rose on Monday morning, with investor attention turning to inflation data, due out later in the week.

The yield on the benchmark 10-year Treasury note climbed 2 basis points to 1.474% at 3:15 a.m. ET. The yield on the 30-year Treasury bond added 1 basis point, at 1.8999%. Yields move inversely to prices and 1 basis point is equal to 0.01%.

Treasurys

It comes after Treasury yields fell on Friday, despite a strong October jobs report. The U.S. Labor Department reported that 531,000 jobs were created last month, well above the forecast of 450,000 payrolls.

Investors will now be focused on the October inflation reading, due out on Wednesday morning.

Both jobs and inflation data are being used by the Federal Reserve to guide its timeline on normalizing monetary policy. The Fed announced last week that it would start this process by reducing its bond-buying program by the end of November.

There are no major data releases due out on Monday but a number of Fed officials are scheduled to make speeches.

Fed Vice Chair Richard Clarida is set to discuss flexible average inflation targeting and prospects for U.S. monetary policy at a virtual event hosted by Brookings Institution, at 9 a.m. ET.

Fed Chair Jerome Powell is then due to give the opening remarks at the Federal Reserve Board's Gender and Economy Conference, at 10:30 a.m. ET.

Fed Governor Michelle Bowman will then talk about the U.S housing market at the Women in Housing and Finance Public Policy Luncheon, at 12 p.m. ET.

Auctions are slated to be held on Monday for $54 billion of 13-week bills, $48 billion of 26-week bills and $56 billion of 3-year notes.

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