Bond yields held steady on Monday ahead of two major auctions and key economic data later in the week.
What is going on
-
The 2-year Treasury yield BX:TMUBMUSD02Y was 4.69%, up 2 points. Yields move in the opposite direction to prices.
-
The yield on the 10-year Treasury note BX:TMUBMUSD10Y was 4.24%, down 1 basis point.
-
The 30-year Treasury yield BX:TMUBMUSD30Y was 4.37%, down 0 basis points.
What drives the markets
A $63 billion auction of two-year notes and a $64 billion auction of 5-year notes are scheduled for Monday.
New home sales data is expected for release, the first indicator of the week which will see the PCE price index on Thursday and the ISM manufacturing index on Friday.
Strategists at BNP Paribas say there is a greater risk that the PCE price index will hit 0.5% rather than 0.3%, due to stronger-than-expected PPI data earlier in the month.