Treasury yields were higher Monday, with investors assessing the U.S. economic outlook as uncertainty about the path ahead for monetary policy, as well as geopolitical concerns, continued.
The yield on the 10-year Treasury was nearly 8 basis points higher at 4.71%. The 2-year Treasury yield traded almost 5 basis points higher at 5.101%.
Yields and prices have an inverted relationship and one basis point equals 0.01%.
Treasurys
On Friday, Philadelphia Federal Reserve President Patrick Harker said he believed interest rates could be held at their current level. That would allow their impact to unfold, he said, adding that as long as interest rates remain restrictive, they will work to ease inflation and the economy.
Harker's comments came as various Fed officials in recent weeks suggested rates may not need to be hiked further because of the recent sharp rise in Treasury yields leading to tighter financial conditions.
Further remarks from Fed officials, including Fed Chairman Jerome Powell, are expected throughout the week. On the data front, investors will get fresh insights into the housing sector and retail sales figures are due Tuesday.
Traders digested fresh inflation data last week. The consumer price index reading for September came in just above expectations, reflecting increases of 0.4% on a monthly basis and 3.7% on an annual basis.
Elsewhere, concerns about the Israel-Hamas war and its implications, including for financial markets and the energy sector, continued as Israel is expected to begin a ground offensive into Gaza this week. Hundreds of thousands of Palestinians were aiming to flee northern Gaza over the weekend after Israel's military called for residents to evacuate to the south of the Palestinian territory.