U.S. Treasury yields climbed Monday as investors awaited the start of the Federal Reserve's first meeting of the year on Tuesday and considered the outlook for the economy.
The yield on the benchmark 10-year Treasury was up more than two basis points to 3.544%. The 2-year Treasury yield was trading nearly four basis points higher at 4.246%.
Yields and prices move in opposite directions. One basis point equals 0.01%.
Many investors are expecting a 25 basis point increase at the conclusion of the Fed's latest interest rate decision on Wednesday.
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That would be a further slowdown of the pace of rate hikes implemented by the Fed in its battle against inflation. Many investors have been hoping for this as concerns about the central bank leading the U.S. economy into a recession by increasing rates too much and too quickly have spread.
Data released earlier this month showed that both consumer and wholesale prices fell on a monthly basis in December. On Friday, the personal consumption expenditure index — one of the Fed's favored inflation measures — indicated that though prices are still rising, they are doing so at a reduced pace.
A series of key labor market reports, including job openings and non farm payroll figures, are due to be released throughout the week. Corporate earnings season continues for a slew of tech companies.