U.S. Treasury yields rose slightly on Monday morning, starting the first trading day of November on a positive note, as investors look ahead to the two-day Federal Reserve meeting later in the week.
The yield on the benchmark 10-year Treasury note climbed by 2 basis points to 1.568% at around 4:00 p.m. ET. The yield on the 30-year Treasury bond added 2 basis points, rising to 1.964%. Yields move inversely to prices and 1 basis point is equal to 0.01%.
Investor focus this week will be on the Federal Reserve's two-day policy meeting on Tuesday and Wednesday. The Fed is expected to announce the start of tapering of its $120 billion in monthly bond purchases as a paring back of its emergency measures to support the U.S. economy.
Raising interest rates is another part of this policy normalization.
Andrew Sheets, chief cross-asset strategist at Morgan Stanley, told CNBC's "Squawk Box Europe" that his team expected the Fed to raise rates "a little bit later than the market is currently pricing," forecasting that this first hike wouldn't happen until the first half of 2023.
October's Institute for Supply Management's manufacturing index fell to 60.8 from September's 61.1. Economists were expecting the index to fall to 60.3. Any number above 50 is considered expansion.
October jobs data will also be closely watched by investors this week, with ADP's employment change report due out on Wednesday and the highly anticipated nonfarm payrolls report set to be released on Friday.
Auctions are scheduled to be held on Monday for $54 billion of 13-week bills and $48 billion of 26-week bills.