U.S. Treasury yields paused a sharp climb on Monday after the 10-year note posted its biggest weekly climb since April following better-than-expected inflation data.
At around 4:04 p.m. ET, the yield on the benchmark 10-year note, which moves inversely to price, inched lower to 2.089%, while the yield on the 30-year Treasury bond slipped to 2.608%.
Last week's surge for Treasury yields came on the back of stronger-than-expected inflation figures last week. The U.S. consumer price index rose more than expected in June, with the core CPI posting its biggest gain in 18 months.
The CPI data, combined with weak demand at recent Treasury auctions, combined to drive up yields. Treasurys had fallen earlier this month to their lowest levels in two years on expectations of a rate cut from the Fed, with the 10-year Treasury yield falling below 2%.
That may come as a relief to some members of the Federal Reserve. Fed Chair Jerome Powell said in a biannual address to Congress last week that the inflation outlook looks muted and that the central bank will act "as appropriate" to sustain economic expansion.
"There is a risk that weak inflation will be even more persistent than we currently anticipate. We are carefully monitoring these developments, and we will continue to assess their implications for the U.S economic outlook and inflation," Powell said in his prepared remarks.
Inflation, which central bankers like to keep around 2%, has seen a reversal over the last year. Powell said Wednesday that the Fed's baseline case sees inflation trending back towards the Fed's objective over time.
Elsewhere, China posted second-quarter growth figures on Monday that showed its economy grew 6.2% in the second-quarter, at its slowest pace in 27 years. Still, China's GDP (gross domestic product) growth was in line with expectations, and data for industrial production, retail sales and fixed-asset investment came in above analyst expectations.