U.S. Treasury yields fell on Monday as investors continued to weigh the domestic inflation and interest rate backdrop against broader geopolitical developments.
yield 10 year US bond Interest rates, a key benchmark for mortgages, auto loans and credit card debt, fell more than 2 basis points to 5.0729%.
long term yield 30 year US bond The rate, which often fluctuates based on geopolitical developments, was also 2 basis points lower at 5.4122%.
yield of 2 year Treasury billwhich more closely follows the Fed’s short-term interest rate decisions, was nearly flat at 4.7273%.
One basis point is equal to 0.01%, or 1/100th of 1%, and yield and price are inversely proportional to each other.
The decline comes even as inflation concerns continue to loom over the U.S. economy.
Solid inflation data released by the Bureau of Labor Statistics last week pushed wholesale prices up 6.3% annually last month, the largest increase since 2022, while consumer prices rose 3.7% annually in September, more than expected.
Meanwhile, energy prices fell on Monday as investors continued to weigh the possibility of more Russian crude oil entering the market. us West Texas Intermediate Futures Oil for November delivery fell 2.05% to $99.33 per barrel. brent crude oilCrude oil, the benchmark for global oil prices, fell 2.65% to $106.99.
With the Fed’s next interest rate decision scheduled for Oct. 28, traders are currently pricing in a more than 85% chance that the Federal Open Market Committee will leave borrowing costs unchanged, according to the CME FedWatch tool.
Key national statistics scheduled for this week include housing starts and new building permits for September, both scheduled to be released by the U.S. Census Bureau on Tuesday.
