Treasury yields rose slightly on Monday morning, with investors gearing up for the Federal Reserve’s two-day policy meeting this week.
The yield on the benchmark 10-year Treasury note rose less than a basis point to 1.464% at 4:15 a.m. ET. The yield on the 30-year Treasury bond climbed to 2.153%. Yields move inversely to prices.
The Federal Open Market Committee is due to meet on Tuesday and Wednesday to discuss policy. Fed Chairman Jerome Powell is then set to hold a press conference following the meeting at 2 p.m. ET on Wednesday.
The Fed is expected to reiterate its commitment to easy monetary policy. However, investors will be watching to see if concerns about inflation will have any effect on its forecasts, particularly given last week’s hotter-than-expected consumer price index reading for May.
Julien Lafargue, chief market strategist at Barclays, told CNBC’s “Squawk Box Europe” on Monday that the bank broadly agreed with the Fed and the European Central Bank’s belief that inflationary pressures were transitory and should “fade away progressively as we move towards the second half of this year.”
Lafargue said Barclays expected inflation to be slightly higher going forward, but not to continue to be as high as May’s reading.
“We might settle in the 2%-3% range for a while, as the recovery takes place, but that would be the upper end of range that we expect to see,” he added.
There are no major data releases due out on Monday.
Auctions are due to be held on Monday for $57 billion of 13-week bills and $54 billion of 26-week bills.
