The U.S. Treasury yields remained largely unchanged on Monday as investors looked into key inflation metering this week. This further illustrates the impact of tariffs on the US economy.
The 10-year financial yield was a base point of 4.149%. The Treasury yield for the second year rose by more than two basis points to 3.605%. Treasury bond yields for 30 years increased by 4.765% below base point.
One basis point equals 0.01%, yield and price move in the opposite direction.
This week’s key data release is the Personal Consumption Expense Index (Federal Reserve’s Priority Inflation Gauge), which should provide much-needed insight into price pressures and the state of the US economy.
“The highlight of this week’s data will be the US Core PCE Deflator on Friday, which should be printed softer than we’d been afraid a few weeks ago, given recent inputs from other inflation releases,” Deutsche Bank analyst said in a memo.
The Fed was cut by a quarter point last week for the first time this year in a widely anticipated move. Fed Fund Futures Trading shows a 70% or more chance of two more quarterly percentage point reductions for the remainder of 2025, following the CME FedWatch tool. Investors look ahead, paying attention to economic data that hints on monetary policy pathways.
Investors will also monitor a series of speeches from Fed officials on Tuesday, including Federal Reserve Chairman Jerome Powell.
