10-year US Treasury yields fell to around 1.43% Monday morning, their lowest level since early March.
The benchmark ten-year government bond yield fell less than one basis point to 1.441% after 7:00 a.m. ET. Meanwhile, the 30-year government bond yield rose to 2.032%. The returns move inversely to the prices.
Government bond yields have fallen despite a brief spike following the Federal Reserve’s latest policy update last week.
The Fed raised its inflation forecast, while a scatter chart of individual central bank members’ expectations for policymakers signaled that a rate hike in 2023 could come earlier than expected.
St. Louis Fed President James Bullard told CNBC on Friday that he expects a first rate hike in 2022 even earlier.
“We expect a good year, a good reopening. But this is a bigger year than we expected, more inflation than we expected, ”Bullard told CNBC’s Squawk Box. “I think it is natural that we should be a little more restrictive here in order to contain inflationary pressures.”
Bullard is not a voting member of the Federal Reserve’s Open Markets Committee this year, but will have one vote next year.
CNBC Pro’s Stock Picks and Investment Trends:
Bullard will speak again with Dallas Fed President Robert Kaplan on Monday at 9:00 a.m. ET on a panel at the Official Monetary and Financial Institutions Forum. New York Fed President John Williams is expected to make remarks at an event organized by the Midsize Bank Coalition of America on Monday afternoon.
The Chicago Fed’s National Activity Index for May, which tracks macroeconomic activity and related inflationary pressures, will be released at 8:30 a.m. ET.
Auctions for $ 57 billion on 13-week notes and $ 54 billion on 26-week notes are due to take place on Monday.
– CNBC’s Hannah Maio and Jeff Cox contributed to this report.
Comments are closed.