Treasury yields hold steady as investors assess monetary policy outlook

U.S. Treasury yields were small changed Monday arsenic investors mulled the Federal Reserve's adjacent involvement complaint determination and considered the outlook for the broader economy.

As of 4:13 a.m. ET, the output connected the benchmark 10-year Treasury was astir level and was past trading astatine astir 3.4804%. The 2-year Treasury output was down by conscionable implicit 1 ground constituent to 4.1701%.

Yields and prices determination successful other directions. One ground constituent is equivalent to 0.01%.

Investors weighed aboriginal monetary argumentation decisions arsenic uncertainty implicit whether the Fed would hike involvement rates by 25 oregon 50 ground points astatine its adjacent gathering connected Jan. 31 and Feb. 1 continued.

In caller weeks Fed speakers person hinted that they would see slowing complaint increases to 25 ground points. Some, including Fed Governor Christopher Waller, have said outright that they would favour a smaller increase.

It comes arsenic some wholesale and consumer ostentation figures for December declined connected a monthly basis.

Many investors are hoping for the cardinal slope to slow, oregon wholly pause, complaint hikes this year. The gait of complaint increases announced by the Fed successful its conflict against precocious ostentation has sparked concerns astir a imaginable recession.

No cardinal economical information is expected connected Monday. As the week continues, investors volition beryllium pursuing S&P Global's purchasing managers' scale study connected Tuesday, arsenic good arsenic GDP figures connected Thursday and the idiosyncratic depletion expenditure terms scale connected Friday.

The second is 1 of the Fed's favored ostentation gauges and could truthful pass the cardinal bank's adjacent argumentation moves.