US Treasury yields edge higher ahead of economic data

  • Pending homes sales are due out at 10 a.m. ET, followed by the Dallas Fed’s manufacturing survey at 10:30 a.m. ET.
  • The U.S. Treasury will auction $51 billion in 13-week bills and $45 billion in 26-week bills.

U.S. government debt prices dipped into negative territory on Monday.

The yield on the benchmark 10-year Treasury note was higher at around 2.980 percent at 4:55 a.m. ET, while the yield on the 30-year Treasury bond was in the black at 3.107 percent. Bond yields move inversely to prices.

As earnings season and concerns surrounding trade continue to keep Wall Street busy, for bond investors, Monday will be all about economic data and auctions news, ahead of central banking decisions due this week.

Coming up today, pending homes sales are due out at 10 a.m. ET, followed by the Dallas Fed’s Texas manufacturing outlook survey at 10:30 a.m. ET.

This comes just days after the advance reading of the U.S.’ gross domestic product (GDP) for the second quarter, which showed Friday that the economy had grown by 4.1 percent, in line with estimates.

The U.S. Treasury will auction $51 billion in 13-week bills and $45 billion in 26-week bills. The size of a four-week bill auction, due to take place Tuesday, will also be announced.

Looking to the central banking sphere, investors are getting ready for the next Federal Open Market Committee (FOMC) monetary policy meeting, which is due to take place on Tuesday and Wednesday. A policy decision is set to be announced Wednesday afternoon and should provide some insight into the performance of the U.S. economy.

This follows fresh batches of economic data, and news that President Donald Trump was “not thrilled” about rising interest rates, expressing concern that the Fed could upset the economic recovery.

Not a Scientific Survey. Results may not total 100% due to rounding.

Overseas, the Bank of Japan (BOJ) is currently in the middle of its two-day policy meeting. The central bank’s decision will be a key focus this week, after reports emerged earlier this month that the BOJ could modify its monetary policy, in order to make its program more sustainable.

Elsewhere, Trump is set to welcome Prime Minister Giuseppe Conte of Italy to the White House on Monday, where the two leaders are likely to comment on global conflicts and how to promote economic prosperity between both sides of the Atlantic.

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