Treasury yields little changed as investors consider economic outlook

U.S. Treasury yields were mixed on Monday as investors digested the latest inflation data and looked ahead to key economic reports due throughout the week.

At 4:22 a.m. ET, the yield on the 10-year Treasury was down by just over one basis point to 4.1561%. The 2-year Treasury yield was trading less than one basis point higher at 4.8990%.

Yields and prices have an inverted relationship and one basis point equals 0.01%.

Investors weighed the latest inflation figures and what it could mean for Federal Reserve monetary policy as they awaited further economic data.

Friday’s producer price index for July had come in at 0.3% on a monthly basis, slightly higher than the 0.2% economists previously surveyed by Dow Jones had expected. That marked the biggest monthly increase since January.

The reading was at odds with other recent inflation indicators, including July’s consumer price index, released Thursday, that suggested pressures from rising prices may be easing. Consumer inflation rose by 0.2% on a monthly basis, in line with expectations, and 3.2% from a year ago, which was slightly below the forecast of 3.3%.

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