On Monday, U.S. Treasury yields rose as investors assessed the economic landscape and anticipated key economic data scheduled for the week.

The yield on the 10-year Treasury increased by over 4 basis points to 4.225%, while the 2-year Treasury yield rose by approximately 6 basis points to 4.593%.

The movement of yields and prices in opposite directions was noted, with one basis point equivalent to 0.01%.

Investors contemplated the future trajectory of the economy, particularly regarding inflation, following recent data that presented a somewhat mixed picture.

They eagerly awaited fresh insights from upcoming economic reports, CNBC reported.

Investors closely monitor economic data not only to gauge the current state of the economy but also to gain insights into the outlook for Federal Reserve interest rates.

The possibility of rate cuts is of interest to many, with signs of a cooling economy seen as positive, while persistent inflation signals may suggest that rate cuts are not imminent.

This week’s economic reports will include labor market data, such as JOLTs job openings figures and private payrolls data from ADP, along with the February jobs report.

Federal Reserve Chairman Jerome Powell is expected to provide testimony on monetary policy to the House of Representatives on Wednesday and to the Senate on Thursday.

Last week, the publication of January’s personal consumption expenditures price index met expectations.

Annual figures for both headline PCE and core PCE, excluding energy or food prices, saw a slight decline from December, as reported by CNBC.

However, concerns about persistent inflationary pressures emerged as consumer and producer price index readings for January exceeded expectations.

Additionally, data from the University of Michigan indicated a growth in inflation expectations among consumers.

Written by B.C. Begley