Treasury yields rose on Monday as investors weighed the U.S. inflation and interest rate backdrop. The 10-year yield climbed to 5.136%, while traders see an above-80% probability that the Fed holds rates at its Oct. 28 decision.
The yield on the 10-year U.S. Treasury rose more than 3 basis points to 5.136% on Monday. Investors continue to weigh the domestic inflation and interest rate backdrop against broader geopolitical developments.
Yields climb across the curve
The 30-year bond yield, which often moves on geopolitical developments, was also more than 3 basis points higher at 5.471%. The 2-year note, which more closely follows short-term Federal Reserve rate decisions, was up more than 3 basis points at 4.772%.
The 10-year yield is the main benchmark for mortgages, auto loans and credit card debt. One basis point equals 0.01%, and yields and prices move inversely to one another.
Strong inflation data
The moves come as inflation concerns continue to loom over the U.S. economy. Last week, the Bureau of Labor Statistics data showed wholesale prices rising 6.3% annually last month, the biggest jump since 2022. Consumer costs rose 3.7% annually in September, beating estimates.
Meanwhile, energy prices fell on Monday as investors weighed the possibility of more Russian crude supply coming onto the market. West Texas Intermediate futures for November delivery were down 0.3% at $101.11 per barrel, and Brent crude dropped 1.2% to $108.56.
Fed decision due Oct. 28
Ahead of the Federal Reserve's next rate decision on Oct. 28, traders are pricing in an above-80% probability that the Federal Open Market Committee leaves borrowing costs unchanged, according to the CME FedWatch tool.
September housing starts and new building permits data, both due Tuesday from the U.S. Census Bureau, are the key domestic releases this week.
Source: CNBC
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