January 10, 2023: -U.S. Treasury yields climbed on Monday as investors considered the inflation outlook and awaited critical economic data.
Almost three basis points increased the yield on the benchmark 10-year Treasury note to 3.599%. The 2-year Treasury traded nearly 4.27% after surging by about one basis point.
Yields and prices have changing relationship, with one basis point equivalent to 0.01%.
Investors continued to assess the inflation outlook and how that could affect the Fed’s coming interest rate decision.
The central bank is because of the meeting on January 31 and February 1. Investors consider whether rate hikes will decrease further as the Fed’s fight with persistently high inflation continues.
The central bank increased prices by 50 basis points at its December discussion, a slight decrease from the 75 basis significance hikes it had implemented at its previous four sessions.
On Friday, December’s nonfarm payrolls report showed that inflationary forces could be easing as wages grew less than expected throughout the month.
The report also showed that the economy further said 233,000 jobs in December, more than the 200,000 last estimated by Dow Jones.
Investors hope to gain more clarity regarding inflation this week as U.S. consumer price index figures remain on Thursday.
Before then, several more minor data points are expected, including the consumer inflation anticipations report on Monday. A few Fed officials are because of the remarks.