Treasury yields rose on Monday as investors continued to assess the outlook for the economy and monetary policy, after last week's hawkish comments from the U.S. Federal Reserve.
The yield on the benchmark 10-year Treasury note was up by 10.8 points at 3.59%, and the yield on the 30-year Treasury bond added more than 10 basis points to 3.64%. The 2-year Treasury yield rose 8 basis points to 4.26%. Yields move inversely to prices.
The Fed on Wednesday opted to hike its key interest rate by 50 basis points to its highest level in 15 years, but Chairman Jerome Powell also indicated that the central bank's efforts to rein in inflation are far from over, and said policymakers will "have to stay at it."
Recession fears were revived as the central bank raised its forecast for rate increases to 5.1%, sending risk assets into a tailspin. However, some risk-on sentiment seemed to be cautiously returning on Monday.