U.S. Treasury yields were lower Monday as investors braced themselves for the latest inflation data and the Federal Reserve's next policy meeting and interest rate decision, which are expected this week.
The 10-year Treasury slipped less than 1 basis point to 3.741%. The 2-year Treasury yield was trading 2.3 basis points lower at 4.581%.
Yields and prices have an inverted relationship and one basis point equals 0.01%.
Treasurys
Investors braced themselves for a week of key economic data and the next highly anticipated interest rate decision from the Fed. May's consumer price index report is due Tuesday, when the Fed will also begin its latest policy meeting.
That meeting will conclude Wednesday with a decision on whether the central bank will pause or continue its rate-hiking campaign, which began in March 2022 with the goal of cooling the economy. After the Fed's last meeting, officials signaled that rate increases could be paused soon.
Comments from Fed speakers and economic data have at times cast doubt over whether rates hikes will indeed be halted at this week's meeting. Nevertheless, traders are pricing in just a 26.4% chance of rates being increased, according to CME Group's FedWatch tool.
No key data is expected Monday.