Treasury yields rose Monday as investors kicked off the second quarter and weighed the latest U.S. inflation data.
The rate on the 10-year Treasury note was nearly 13 basis points higher around 4.319%, while the rate on the 2-year note was 9 basis points higher at 4.711%.
Yields and prices move in opposite directions and one basis point equals 0.01%.
Treasurys
Yields rose after Federal Reserve Chair Jerome Powell said policymakers do not need to rush an interest rate cut, as economic growth remains strong and inflation is above target.
"That means we don't need to be in a hurry to cut," the central bank chief told public radio's "Marketplace" program. "The economy is strong right now, and the labor market is strong right now. And inflation has been coming down. We can and we will be careful about this decision because we can be."
Traders also reacted Monday to the personal consumption expenditures price index that was released on Good Friday, when the market was closed. Core PCE inflation, which excludes food and energy, rose 2.8% on a 12-month basis in February, in line with expectations, but still above the central bank's 2% target. The measure was up 0.3% from a month ago, the Commerce Department said.
Steven Blitz, chief U.S. economist at TS Lombard, told CNBC's "Squawk Box Europe" on Thursday that the likelihood of one or no Fed interest rate cuts this year was looking "pretty good." Blitz said markets would continue to march higher, however, even if the Fed decides against easing policy this year.
But Canaccord Genuity's Tony Dwyer said he thinks a deteriorating jobs market and easing inflation will ultimately push the Fed to act.
"I'm not saying that they have to go back to zero, but they have to be more aggressive," the firm's chief market strategist told CNBC's "Fast Money" on Thursday. "One of the most aggressive topics that I talk to clients about is how bad the incoming data is."