U.S. Treasury yields were lower on Monday as investors await a busy week of key economic data and take in the state of the U.S. economy after comments from U.S. President Donald Trump over the weekend.
At 5:51 a.m. ET, the benchmark 10-year Treasury yield fell more than 5 basis points to 4.261%. The 2-year Treasury yield dropped by more than 4 basis points to 3.96%.
One basis point is equal to 0.01%, and yields and prices move in opposite directions.
Investors are anticipating several economic data releases this week, with the New York Fed survey of consumer expectations due out on Monday at 10 a.m. ET. This will pair with the University of Michigan consumer sentiment report that will be published on Friday.
The big report of the week is the Consumer Price Index, due for release on Wednesday at 7:30 a.m. ET, as well as the Producer Price Index on Thursday. Investors will use these indicators as an important gauge for the health of the U.S. economy.
“Inflation data will dominate the economic calendar this week. The total and core Consumer Price Indexes (CPI) likely rose at a more moderate pace in February after sharp increases in the prior month, resulting in annual increases holding roughly steady,” Bill Adams, chief economist at Comerica Bank, said in a statement.
Investor concerns picked up over the weekend, as Trump commented that his tariffs may affect U.S. growth and didn’t rule out the possibility of a recession. U.S. Treasury Secretary Scott Bessent made similar remarks on Friday, saying the economy may be slowing,
“Could we be seeing that this economy that we inherited starting to roll a bit? Sure. And look, there’s going to be a natural adjustment as we move away from public spending to private spending,” Bessent said on CNBC’s “Squawk Box.”
“The market and the economy have just become hooked. We’ve become addicted to this government spending, and there’s going to be a detox period,” he added.
