U.S. Treasury yields fell on Monday as investors awaited the release of key economic data and looked to the Federal Reserve's two-day policy meeting.
The yield on the 10-year Treasury was down by 3 basis points at 4.168%. The 2-year Treasury yield was last at 4.385% after falling by less than 1 basis point.
Yields and prices move in opposite directions. One basis point equals 0.01%.
Investors awaited not only the Fed's July meeting, but also a key labor market report slated for Friday.
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The Fed meeting is set to kick off Tuesday and conclude Wednesday with an interest rate announcement and the release of fresh monetary policy guidance.
The benchmark fed funds rates is widely expected to remain unchanged at 5.25% to 5.50%, but investors are hoping for clues about when rate cuts will begin and how many will be made this year. They will therefore be listening closely for hints in the central bank statement as well as at the post-meeting press conference by Fed Chairman Jerome Powell.
Fed officials have in recent months repeatedly said that they were looking for more evidence that inflation is sustainably returning to their 2% target before cutting rates.
Money Report
Last Friday, the personal consumption expenditures price index, the Fed's favored inflation measure, came in as expected. The PCE rose 0.1% in June from the previous month, and 2.5% from a year earlier.
On the data front, JOLTs job opening figures are due Tuesday, followed by ADP's private payrolls report Wednesday and the July jobs report, including nonfarm payrolls and unemployment data, on Friday. Investors will study the data for hints about the state of the labor market, as that is also likely to inform monetary policy expectations and decision-making.
