U.S. Treasury yields inched higher on Monday as investors looked to a busy week ahead, with a flurry of economic data due including a key inflation reading and insights on housing.
At 5:40 a.m. ET, the 10-year Treasury yield was up more than 1 basis point at 4.437%, and the 2-year Treasury yield rose by more than 2 basis points to 4.219%.
One basis point is equal to 0.01% and yields and prices move in opposite directions.
Treasurys
Investors are expecting a packed week of economic data starting with the Chicago Fed National Activity Index for January out on Monday at 8:30 a.m. ET. This will be followed by the Dallas Fed Manufacturing Index at 10:30 a.m.
A number of reports on housing are also due throughout the week including the S&P CoreLogic Case-Shiller National Home Price Index on Tuesday, which will measure the change in the average sale price of single-family homes across the U.S.
Wednesday will bring the MBA 30-Year Mortgage Rate and new home sales data.
On Thursday, data on the GDP growth rate will offer insights into how the U.S. economy fared in the fourth quarter of 2024.
The most anticipated data for the week will be the personal consumption expenditure index which will be delivered on Friday at 8:30 a.m. ET. The Federal Reserve’s preferred inflation gauge heavily influences the Fed’s rate-cutting decisions.
Earlier this month, Fed Chairman Jerome Powell indicated that after a hotter-than-expected CPI report in January, the Fed doesn’t “need to be in a hurry” to lower interest rates further.
Markets have interpreted the recent messaging as indications that the Fed will be on hold with rates, probably into the summer, after cutting its benchmark borrowing level by a full percentage point in the latter part of 2024.
– CNBC’s Jeff Cox contributed to this report.