U.S. Treasury yields fell Monday as investors continued to monitor the outlook for inflation and the economy.
The yield on the 2-year note briefly reached its highest level since November, and was last trading down 3 basis points at 3.92%. The yield on the benchmark 10-year Treasury note was down 2 basis points at 3.937%. Yields move inversely to prices.
The prospect of stickier inflation necessitating more persistent monetary policy tightening from the U.S. Federal Reserve led the major averages on Wall Street to their biggest weekly losses of the year by the time markets closed Friday.
Stocks sank Friday and Treasury yields jumped following a bigger-than-expected increase in the latest reading for personal consumption expenditures, the Fed's preferred inflation gauge.
They have also put more upside pressure on yields recently. For the month, the 2-year yield has advanced more than 70 basis points. The benchmark 10-year rate, meanwhile, has soared more than 50 basis points.
Durable goods orders fell in January as consumers pulled back spending on big-ticket items. Consumer confidence and the ISM manufacturing survey are on the slate later in the week.
Correction: An earlier version of this story misstated the high on the 2-year Treasury note.