U.S. Treasury yields fall as investors look ahead to key economic data this week

U.S. Treasury yields decreased on Monday as investors awaited important economic data to be released this week, providing insights into interest rates and the state of the economy.

The 10-year Treasury yield was about 1 basis point lower at 4.246%, while the 2-year Treasury yield was slightly down at 4.688%.

Investors are looking forward to economic data, including the personal consumption expenditures price index on Thursday, which could influence the Federal Reserve’s decisions on interest rate policy. The Fed is closely monitoring inflation levels and looking for evidence that it is moving towards its 2% target.

Recent readings of the consumer price index and producer price index have been higher than expected, raising concerns about inflation and the possibility of higher interest rates in the long term. Previously, the market anticipated the first interest rate cut to occur in June.

Additional key data this week includes updated gross domestic product figures on Wednesday. Investors are closely watching to see if the economy can avoid a recession, given the elevated interest rates.

On Monday, new home sales and building permit figures for January are also due.