Treasury yields inch higher ahead of Fed meeting

U.S. Treasury yields were fractionally higher on Monday, as investors look ahead to this week’s Federal Reserve policy meeting.

The yield on the benchmark 10-year Treasury note was just over a single basis point higher at 4.2563%, while the yield on the 30-year Treasury bond was just under a point higher at 4.3339%. Yields move inversely to prices.

Traders are waiting on this week’s Federal Reserve meeting, looking out for indicators of when policymakers will begin cutting interest rates.

Risk sentiment received a boost on Friday, after consumer data from the University of Michigan signaled resilient economic activity and cooling inflation, igniting hopes of a much-coveted “soft landing” scenario in the U.S. This came after November’s U.S. jobs report showed a surprise drop in unemployment.

The reading for November consumer inflation expectations is due at 11 a.m. ET on Monday.

Auctions will be held that same day for $75 billion of 13-week Treasury bills and $68 billion of 26-week bills, along with $50 billion of 3-year notes and $37 billion of 10-year notes.