Traders on the New York Stock Exchange floor on Sept. 9, 2024.
U.S. Treasury yields advanced on Monday as investors considered the state of the economy and outlook for inflation after the latest key data release.
The yield on the 10-year Treasury added more than 1 basis point to 3.76%. The 2-year Treasury yield was last at 3.6% after rising by more than 3 basis points.
Yields and prices move in opposite directions. One basis point equals 0.01%.
Investors were assessing the state of the economy, including the path ahead for inflation and what this could mean for interest rates after the release of key data.
The latest personal expenditure price index — the Federal Reserve's preferred inflation gauge — was released on Friday, with the data showing a 0.1% month-over-month increase in August. The monthly figure was in line with the forecast from economists surveyed by Dow Jones.
The 12-month inflation rate came in at 2.2%, down from 2.5% in July and the lowest since February 2021.
The core PCE, which strips out more volatile food and energy costs, rose 0.1% from the previous month and 2.7% on an annual basis, which was in line with expectations.
Money Report
It comes as investor attention has shifted back toward the state of the economy and whether it is easing, after the Fed started cutting interest rates earlier this month.
Investors will receive more clues about how the economy is faring this week. Fresh manufacturing and services PMI readings are expected, along with the latest job openings figures and the September jobs report. The latter includes non farm payroll and unemployment data.
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Various Fed policymakers including Chairman Jerome Powell are also set to make remarks.
