Bond yields fell slightly on Monday as markets awaited data on consumer inflation expectations.
The benchmark 10-year Treasury bond yield was 3 basis points lower, trading at 3.29% around 7:00 am ET. The yield on the 30-year government bond fell about 2 basis points to 3.439%.
The yield on the 2-year government bond traded 3 basis points lower at 3.536%. Yields move inversely with prices and one basis point equals 0.01%.
Markets will be looking to the New York Fed’s Consumer Sentiment Survey, which outlines how consumers expect headline inflation and prices on food, housing, gas and education. It also provides insight into earnings growth and employment prospects.
Fears receded as markets posted gains on Friday and the S&P 500 rose to surpass its close on the day that Federal Reserve Chair Jerome Powell warned of more pain during the Fed’s Jackson Hole meeting dwindled to aggressive rate hikes among some investors. But while US consumption remains healthy, growth is weak and the global economic slowdown still leaves many worried about a recession.
Recent evidence shows the pace of inflation is slowing, but consumers are still struggling; According to personal finance website WalletHub, nearly a third of Americans are struggling to pay their utility bills.
On the Bond auction front, the auctions for the 3-year, 10-year, 3-month and 6-month bills are due on Monday.