Treasury yields surged Monday morning, led by short-term rates, as traders reacted to hotter-than- expected inflation data last week.
The two-year rate went up more than 10 basis points to its highest level in seven years. The 10-year Treasury yield rose, last trading at about 3.1762%, with the two edging closer to an Inversion, which can signal a recession. A basis point is the difference between the yield and the price.
| TICKER | COMPANY | YIELD | CHANGE | %CHANGE |
|---|---|---|---|---|
| U.S. 3 Month Treasury | 1.383 | 0.02 | 0 | |
| U.S. 1 Year Treasury | 2.575 | 0.068 | 0 | |
| U.S. 2 Year Treasury | 3.193 | 0.144 | 0 | |
| U.S. 5 Year Treasury | 3.355 | 0.102 | 0 | |
| U.S. 10 Year Treasury | 3.221 | 0.064 | 0 | |
| U.S. 30 Year Treasury | 3.248 | 0.05 | 0 |
The yield curve has flattened because of short-term rates moving more in the last few days.
The Federal Reserve is expected to announce a half-point rate hike on Wednesday. The Fed has raised rates twice this year, including a 50-basis-point increase in May.
The Bureau of Labor Statistics reported Friday that the US consumer price index rose by 8.6% in May on a year-over-year basis. The economists were expecting a gain of 8%. The so-called coreCPI, which excludes volatile food and energy prices, increased by six percent.
The University of Michigan consumer sentiment reading fell to a record low, which may have accelerated the selling of bonds at the end of the week.
There are no data releases on Monday.
CNBC's Jesse Pound and SAM MEREDITH REPORTED.
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