Bond yields fell slightly on Monday as markets awaited data on consumer inflation expectations.
Yield on 2-year treasury trading just 1 basis point lower at 3.5548%. Yields move inversely to prices and the basis point is equal to 0.01%.
Markets will look to the New York Fed’s consumer expectations survey, which outlines how consumers expect overall inflation and prices for food, housing, gas and education. It also offers insight into earnings growth and job prospects.
As markets posted gains on Friday, with the S&P 500 rising to surpass where it closed on a day when Federal Reserve Chairman Jerome Powell warned of more pain to come during the Jackson Hole Fed meeting, fears of an aggressive rate hike eased among some investors . But while U.S. consumption remains healthy, growth is weak and the global economic slowdown still raises fears of a recession.
Recent evidence shows that the pace of inflation is easing, but consumers are still struggling; according to the personal finance website WalletHub, nearly a third of Americans have trouble paying their energy bills.
On the bond auction front, the auction of 3-year, 10-year, 3-month and 6-month bills is due on Monday.