Following last Friday's robust employment figures, bond yields traded in a narrow range and finished flat on Monday, with market participants looking ahead to a new round of economic releases.
The 10-year Treasury yield, a key benchmark for pricing mortgages, auto loans, and credit card debt, held steady at 4.8635%. The 30-year Treasury yield, which often moves in response to geopolitical developments, remained unchanged at 5.2613%. The 2-year Treasury yield, which is more closely tied to the Federal Reserve's short-term rate decisions, was also flat at 4.5301%. One basis point equals 0.01%; bond yields and prices move in opposite directions.
Traders are focused on key inflation data due Tuesday, hoping it will provide further insight into the current state of the U.S. domestic economy. According to market consensus compiled by Trading Economics, October U.S. CPI is expected to rise to 3.9% year-over-year, up from 3.7% in September. October core CPI, which strips out volatile food and energy prices, is also expected to climb, rising to 2.8% from 2.6% in September. The U.S. producer price index report is due later this week, and that data often offers an early signal of consumer inflation trends.
Last week's stronger-than-expected employment data pushed Treasury yields higher during Friday's trading session. The monthly nonfarm payrolls report showed 165,000 jobs added in October, far above economists' forecast of 59,000, while the unemployment rate fell to 4.1%.
Meanwhile, energy prices moved lower in early trading. New York crude oil futures for December delivery fell 1.2% to $89.70 a barrel, with related remarks saying the likelihood of a new round of Iranian attacks is "very low" as negotiations aimed at resolving the Middle East conflict continue.
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