U.S. Treasury yields fell slightly on Monday after a key inflation metric came in line with expectations.
The yield on the benchmark 10-year Treasury note was slightly lower at around 2.944 percent at 12:28 p.m. ET, while the yield on the 30-year Treasury bond slipped to 3.106 percent. Bond yields move inversely to prices.
The core personal consumption expenditures (PCE) price index rose 0.2 percent in March, matching estimates. On a year-over-year basis, however, the core PCE rose 1.9 percent last month, the biggest increase since February 2017.
"As the inflation data was as expected ..., yields are down a touch across the curve," said Peter Boockvar, chief investment officer at Bleakley Advisory Group.
The core PCE price index is the Federal Reserve's preferred measure of inflation. Later this week, the U.S. central is scheduled to hold a meeting on monetary policy, though no major changes are expected. Market expectations for a May rate hike are just 7.2 percent, according to the CME Group's FedWatch tool.
"The broad expectation for the FOMC meeting is that they won't make a move on rates, but may move to a bit more hawkish with the language in its statement," said Kevin Giddis, head of fixed income capital markets at Raymond James, in a note. "This will likely be viewed as a "set up" for the next meeting on June 13th, where a growing number of economists believe that will be the meeting in which they will raise rates."
Elsewhere, pending home sales barely rose as buyers struggled to afford what little supply is available.
Overseas, investors will be watching North Korea, after the nation's leader met with the leader of South Korea on Friday. The pair pledged to abolish the risk of war and to collaborate on the total denuclearization of the Korean peninsula.
No speeches by the U.S. Federal Reserve are scheduled to take place.