US Treasury yields rose on Monday morning, led by short-term interest rates, as traders reacted to hotter-than-expected inflation data last week and projected a possible recession.
The two-year rate jumped more than 10 basis points to 3.1535%, reaching its highest level since 2007. The benchmark 10-year Treasury yield was also up, last trading at 3.1762%, with the two close to reversing – which could It often indicates a stagnation. Returns move opposite the price, and the basis point is 0.01%.
Short-term interest rates have moved more in the past few days due to their high sensitivity to rising Fed rates, flattening the widely watched yield curve.
The highly anticipated Federal Reserve meeting comes this week, where the central bank is expected to announce a rate hike of at least half a point on Wednesday. The Fed has raised interest rates twice this year, including a 50 basis point (0.5 percentage point) increase in May in an effort to stave off a recent inflation spike.
Last week, the US Consumer Price Index, a closely watched inflation gauge, It rose 8.6% in May year-on-yearIt is the fastest increase since 1981, the Bureau of Labor Statistics reported Friday. Economists polled by Dow Jones expected a gain of 8.3%. Core CPI, which strips out volatile food and energy prices, rose 6%.
Meanwhile, the University of Michigan’s consumer confidence reading slumped to a record low, and it appears to be accelerating the selling of bonds at the end of last week.
No major economic data due on Monday.
CNBC’s Jesse Pound and Sam Meredith contributed reporting.