The US 10-year Treasury yield fell slightly on Monday morning, but remained above 1.51% as investors digested the surge in a major inflation indicator index.
The benchmark ten-year Treasury yield fell less than one basis point to 1.516% at 3:45 a.m. ET. The yield on the 30-year government bond fell to 2.143%. The returns move inversely to the prices.
Government bond yields rose on Friday after the Commerce Department reported that the consumer spending price index rose 3.4% year over year in May.
This was the fastest increase since April 1992 and corresponded to the Dow Jones estimate for the price gains of the PCE index.
Investor attention this week will be focused on the June jobs report that the Department of Labor will release on Friday.
Economists expect the number of non-farm workers to have increased by 683,000 in June. While such a robust figure would top 559,000 in May, it would still be below the 1 million figure some had hoped a US economy could see rebounding from the Covid-19 crisis.
Meanwhile, President Joe Biden said on Saturday that he has no intention of vetoing a bipartisan infrastructure bill if it comes without a reconciliation package, going back to a statement made last week.
That came after Biden announced last Thursday that a bipartisan group of lawmakers had reached an infrastructure deal after weeks of negotiations.
No major economic data will be released on Monday.
Randal Quarles, the Federal Reserve Vice Chairman of Supervision, will speak on the central bank’s digital currency at the 2021 Utah Bankers Association Annual Meeting on Monday at 1:10 p.m. ET.
Treasury auctions for $ 57 billion on 13-week notes and $ 54 billion on 26-week notes are due to take place on Monday.
– CNBC’s Thomas Franck and Emma Newburger contributed to this market report.
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