The 2-year Treasury yield inched up Monday in a shortened trading day, as investors considered the outlook for the U.S. economy and the Federal Reserve's next monetary policy moves.
The 2-year Treasury yield traded nearly 7 basis point higher at 4.946%. The yield on the 10-year Treasury was up more than 4 basis points at 3.862%.
Yields and prices move in opposite directions. One basis point equals 0.01%.
Treasurys
The ISM's manufacturing purchasing managers' index for June came in slightly worse than expected and was once again below 50, signaling that economic activity was declining.
Several key labor market reports and the minutes from the Fed's last meeting are also due throughout the week. Markets closed early Monday and will remain dark Tuesday for the Independence Day holiday.
It comes after Fed Chair Jerome Powell said last week that it would take some time before inflation was back in the central bank's 2% target range.
Powell also reiterated that further interest rate hikes are likely and suggested that they may even be implemented at consecutive policy meetings depending on upcoming data.
On Friday, the latest personal consumption expenditure price index indicated that inflationary pressures could be easing. It rose by 0.3% in May, which was in line with expectations by economists surveyed by Dow Jones, and by 4.6% compared to a year ago, just below the predicted 4.7%.
The Fed is widely expected to hike interest rates at its next meeting later this month.