Treasury yields climbed on Monday as markets scanned Federal Reserve speaker remarks and recent U.S. inflation figures for hints about the central bank’s policy plans.
The yield on the policy-sensitive 2-year Treasury was 6 basis points higher at 4.387%. The benchmark 10-year Treasury yield was last up by 6 basis points at 3.897%, remaining below the key 4% level.
Both had plummeted on Thursday, dropping by around 30 and 32 basis points respectively.Yields and prices move in opposite directions and one basis point is equivalent to 0.01%.Investors are closely watching remarks from Federal Reserve speakers for clues about the central bank’s policy plans.
Speaking at a conference in Sydney on Monday, Fed Governor Christopher Waller said that while the central bank would consider slowing interest rate hikes, there’s still “a ways to go” before hikes can be paused.
The central bank has been hiking interest rates to fight persistently high inflation. However, many investors fear that the pace of the hikes is leading the U.S. economy into a recession.
