Treasury yields edge lower ahead of U.S. consumer expectations report

Bond yields fell slightly on Monday as markets awaited data on consumer inflation expectations.

The yield on the benchmark 10-year Treasury was 1 basis point lower, trading at 3.3098% around 4:15 a.m. ET. The yield on 30-year Treasury bills fell one basis point to 3.4527%.

The 2-year Treasury yield traded just 1 basis point at 3.5548%. Yields move inversely to prices and one basis point is equal to 0.01%.

Markets will look to the New York Fed’s Consumer Expectations Survey, which outlines what consumers expect to see inflation and overall prices for food, shelter, gasoline and education. It also offers insight into income growth and job prospects.

As markets traded gains on Friday, with the S&P 500 surging above its closing level on the day Federal Reserve Chairman Jerome Powell warned of more pain ahead at the Fed meeting in Jackson Hole fears of aggressive rate hikes have faded 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 data shows that the pace of inflation is slowing, but consumers are still struggling; According to personal finance website WalletHub, nearly a third of Americans struggle to pay their energy bills.

On the bond auction front, auctions of 3-year, 10-year, 3-month and 6-month bonds are due to take place on Monday.


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