investors eye key inflation data
U.S. Treasury yields rose as investors braced for upcoming inflation data and reacted to climbing oil prices. Markets are currently weighing the likelihood of Federal Reserve interest rate hikes in September based on recent economic indicators.
Why it matters
Fluctuations in Treasury yields and inflation expectations are critical drivers for global financial markets and central bank policy decisions.
The 10-year Treasury note yield rose at the start of the week as oil prices climbed and investors looked ahead to a busy week of economic data, with particular focus on a key inflation reading.
The benchmark yield gained more than 4 basis points to 4.705%, while the 30-year Treasury bond traded up more than 4 basis points as well to 5.251%. The 2-year Treasury note yield rose more than 3 basis points to 4.241%.
One basis point equals 0.01%, and yields and prices move in opposite directions.
Oil prices advanced on Monday, with U.S. crude futures hitting $80 per barrel, as uncertainty among investors grew that the U.S. and Iran would reach a deal to reopen the Strait of Hormuz.
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