U.S. Treasury yields climbed on Monday, with the 10-year yield hovering just below the latest 15-year high it hit last week, as investors assessed the outlook for interest rates and awaited fresh economic data.
At 4:13 a.m. ET, the yield on the 10-year Treasury was up by over four basis points to 4.6186%. It had reached 4.688% on Thursday, its highest level since Oct. 15, 2007.
The 2-year Treasury yield was trading at 5.0957% after rising by close to five basis points.
Yields and prices move in opposite directions and one basis point equals 0.01%.
Investors weighed the outlook for the economy and monetary policy after Friday’s release of the personal consumption expenditures price index, which came in lower than previously anticipated for August.
The core PCE, which does not include food and energy prices, reflected a 0.1% increase from the previous month, below the 0.2% economists previously surveyed by Dow Jones had expected. It gained 3.9% on an annual basis, which was in line with forecasts.
That came as investors considered the outlook for Federal Reserve monetary policy, especially on interest rates. Fed officials have indicated that a further interest rate hike may be necessary this year and rates are likely to stay higher for longer as policymakers work to ease the economy and cool persistent inflation.
Investors will be looking to economic reports and comments from Fed officials this week for fresh hints about the state of the economy. Data from the manufacturing sector is due Monday, and several key labor market reports are expected throughout the week, including the September’s nonfarm payrolls and unemployment figures on Friday.
