U.S. Treasury yields slipped on Monday as investors looked to key economic data slated for this week, including fresh inflation insights that could affect the direction of interest rates.
The yield on the 10-year Treasury dropped about 3 basis points at 4.012%. The 2-year Treasury yield was last about 3 basis points lower to 4.362%.
Yields and prices move in opposite directions and one basis point equals 0.01%.
Treasurys
Investors awaited a series of economic data and comments from Federal Reserve officials expected this week.
Fresh data Monday showed that consumer inflation expectations continued to trend lower in December.
December's consumer price index reading is due Thursday, followed by the producer price index for the month on Friday. The data is set to provide clues about whether higher interest rates are taking effect and slowing inflation as well as the economy.
That could inform the Fed's interest rate policy and offer hints about when interest rates may be cut and at what pace.
Following its latest meeting in December, the central bank indicated that three rate cuts were likely to be announced in 2024, but did not specify when this might happen. Some traders have been hoping that rate cuts could start as early as March and be more extensive than the Fed has suggested.
Economic data published last week has, however, cast doubt over that prospect, with Friday's nonfarm payrolls report coming in above expectations, indicating continued resilience and strength in the economy. The report showed that 216,000 jobs were added in December, higher than the 170,000 increase expected by economists surveyed by Dow Jones. That reflected a significant rise from November's 173,000 figure.