U.S. Treasury yields moved slightly higher on Monday as investors prepared for a holiday-shortened trading week that includes several key government debt auctions.
The benchmark 10-year Treasury yield rose by about 1 basis point to 4.16% in early morning trading. The 2-year Treasury yield was little changed at around 3.49%, while the 30-year bond yield climbed nearly 2 basis points to approximately 4.84%. Bond yields move inversely to prices, and one basis point equals 0.01%.
The Treasury Department is set to hold a series of closely watched auctions this week, offering insight into investor demand for U.S. debt as markets look ahead to inflation and interest rate trends going into 2026. A $69 billion auction of 2-year notes is scheduled for Monday, followed by a $70 billion 5-year note auction on Tuesday and a $44 billion 7-year note auction on Wednesday.
The auctions follow recent inflation data showing continued easing in price pressures. The Consumer Price Index rose at a 2.7% annualized pace last month, according to the Bureau of Labor Statistics. Despite signs of cooling inflation, expectations for an interest rate cut at the Federal Reserve’s January meeting remain low.
Federal Reserve Bank of Cleveland President Beth Hammack said Sunday that interest rates should remain at current levels for several months, noting that inflation risks currently outweigh concerns about labor market weakness.
Investors are also awaiting the release of the Chicago Fed National Activity Index later on Monday. The index, which measures overall U.S. economic activity and related inflationary pressures, is expected to come in at -0.4, compared with a prior reading of -0.12 in August.
