T-Yields retreat as traders eye Wednesday’s key inflation data

US Treasury yields retreated on Monday as traders continued to digest strong numbers in the latest jobs report and braced for key inflation figures that will be released on Wednesday.

Last Friday, investors absorbed the June employment report that showed jobs growing at a faster clip than expected. Nonfarm payrolls increased 372,000 last month, according to the Bureau of Labor Statistics. Economists predicted the US economy would add 250,000 jobs, according to the Dow Jones. Yields leaped on Friday after the release with the report likely to keep the US Federal Reserve more aggressive with its rate hiking path.


The 2-year dropped 8 basis points to trade at 3.04% but remained above the 10-year Treasury which dropped12 basis points to 2.98%, dropping below the 3% mark. The yield on the 30-year Treasury bond was traded 11 basis points lower at 3.163%. Yields move inversely to prices, and a basis point is equal to 0.01%.

The June producer price index is due out Thursday and the University of Michigan consumer sentiment report for July will be released Friday. There are no major data releases out Monday.

Investors are looking ahead to key inflation data this week. The June consumer price index will be released Wednesday and is expected to show headline inflation, including food and energy, surging above May’s 8.6% level.