Traders at work at the New York Stock Exchange on January 27, 2026.
new york stock exchange
U.S. Treasury yields rose on Monday as investors digested the latest economic data and continued to weigh the impact of President Donald Trump’s selection of Federal Reserve Chairman.
of 10 year treasury Yields rose more than 4 basis points to 4.283%, with the two-year Treasury yield also rising to 3.576%. Meanwhile, the yield on the 30-year U.S. Treasury rose more than 4 basis points to 4.914%.
One basis point equals 0.01%, and yields and prices move in opposite directions.
On Monday, the ISM Manufacturing Business Index for January stood at 52.6, indicating that U.S. factory activity expanded during the period. The latest figure was far above the 48.4 expected by economists surveyed by Dow Jones.
The index had been in contraction territory below 50 for 26 months prior to its last reading of expansion.
“U.S. factory confidence is surging at the start of the new year as orders soar, as the economic threat of the federal government shutdown and the distraction of higher import tariffs move further and further out of companies’ rearview mirrors,” said Chris Rupkey, chief economist at FWDBONDS. He added that the statistics were “the best sign yet that the economy is progressing at a strong pace”.
Investors will be keeping an eye on the latest ADP employment survey, due out this week, to get an idea of the current state of the labor market. However, the Bureau of Labor Statistics’ January employment report, originally scheduled to be released Friday, will be postponed due to the partial government shutdown.
The day’s move in yields comes after a firm move in yields on Friday after President Trump nominated Kevin Warsh to replace Jerome Powell as the next Fed chair.
The Fed last week signaled that the economic outlook was improving and removed warnings of “downside risks to employment” from its regular policy statement, leading investors to conclude that the timeline for further interest rate cuts this year will be pushed back.
— CNBC’s Sarah Min contributed to this report.
