Treasury yields edged up Monday morning as investors braced for the Federal Reserve’s two-day policy meeting this week.
The benchmark 10-year Treasury bill yield rose less than a basis point to 1.464% at 4:15 a.m. ET. The yield on the 30-year Treasury bill climbed to 2.153%. Yields move in the opposite direction to prices.
The Federal Open Market Committee is scheduled to meet Tuesday and Wednesday to discuss the policy. Fed Chairman Jerome Powell is next scheduled to hold a post-meeting press conference at 2 p.m. ET on Wednesday.
The Fed is expected to reiterate its commitment to looser monetary policy. However, investors will be watching to see if inflation concerns have any effect on his outlook, especially given the warmer-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 that inflationary pressures were transitory and should “s’ gradually fade as we approach the second half of this year. “
Lafargue said Barclays expected inflation to be slightly higher going forward, but not continue to be as high as the May reading.
“We could settle into a 2-3% range for a while as the recovery takes place, but that would be the upper end of the range we expect to see,” he said. he adds.
There are no major data releases expected on Monday.
Auctions are scheduled to take place Monday for $ 57 billion in 13-week bills and $ 54 billion in 26-week bills.