U.S. Treasury yields rose Monday, adding to the strong gains seen in the previous session, as traders braced for key inflation data slated for release this week.
The 2-year Treasury yield climbed 4.4 basis points to 3.966%. The 10-year Treasury yield was up by 5.5 basis points to 3.501%. Yields and prices move in opposite directions. One basis point equals 0.01%.
Treasurys
The April reading on the U.S. consumer price index, a widely followed measure of inflation, is due Wednesday. Economists polled by Dow Jones expect CPI rose 5% last month on a year-over-year basis. Month over month, the see a 0.4% gain.
Investors will look through the report for clues on future Federal Reserve policy moves. As of Monday, traders are pricing in just a 13.1% chance of another 25 basis-point rate hike next month, according to the CME Group's FedWatch tool.
Yields surged Friday as data from the Bureau of Labor Statistics showed stronger-than-expected jobs growth in April even as markets grappled with the banking fallout.
The U.S. added 253,000 nonfarm payrolls in April, surpassing the 180,000 expected by Wall Street. The unemployment rate came in at 3.4%, below an estimate of 3.6%. A strong job market will make it less likely that the Federal Reserve will halt its aggressive tightening campaign, a policy shift that many on Wall Street had been hoping for.
—CNBC's Hakyung Kim contributed to this article.