U.S. Treasury yields declined on Monday as market participants prepared for a packed week of economic data releases offering insights into labor conditions, inflation, and consumer spending. The yield on the 10-year Treasury note dropped slightly by under 2 basis points, settling at 4.182%. Similarly, the 2-year yield fell by over 2 basis points to 3.51%, while the 30-year bond yield decreased marginally to 4.853%, down less than one basis point. Since bond yields move inversely to prices, these shifts reflect rising demand for safe-haven assets.
Investors are closely watching upcoming reports, starting with Tuesday’s release of November’s nonfarm payrolls and unemployment figures—data delayed due to the 43-day U.S. government shutdown. Retail sales numbers from October will follow, providing clues about consumer behavior. The week’s focal point is Thursday’s consumer price index report for November, which is projected to show annual headline inflation rising to 3.1%, according to FactSet consensus estimates. Core inflation, which strips out fluctuating food and energy costs, is also expected to register at 3.1%. Additional data points include weekly jobless claims on Thursday and November’s existing home sales, scheduled for Friday.
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Treasury yields decline as investors look ahead to busy week of economic data
U.S. Treasury yields moved lower on Monday as investors looked ahead to several economic reports this week, which will offer insight into the state of the jobs market, inflation and retail sales. n nThe benchmark 10-year Treasury yield dipped less than 2 basis points to 4.182%. The 2-year Treasury yield also fell more than 2 basis points to 3.51%, while the 30-year Treasury bond yield slid less than a basis point to 4.853%. n nOne basis point equals 0.01%, and yields and prices move in opposite directions. n nInvestors are anticipating several economic points this week, with Tuesday bringing the November nonfarm payrolls report and the latest unemployment rate, which was delayed due to the historic 43-day U.S. government shutdown. Those will be followed by October retail sales figures. n nThe highlight is the release of key inflation data on Thursday, the consumer price index report for November. It is expected to show that headline inflation increased to 3.1% on a yearly basis in November, according to FactSet consensus estimates. Core inflation, which excludes volatile food and energy prices, is forecast to also come in at 3.1%. n nWeekly initial jobless claims are also due on Thursday, with November’s existing home sales data set to be released on Friday.