US Treasury bond yields rose on Monday as sentiment improved, at the start of a choppy week that will include the release of the latest Federal Reserve meeting minutes and the issuance of new short and medium term.
Longer-dated bond yields have fallen from 3-1/2-year highs as sharp equity declines increased demand for safe-haven debt, and investors worry that the Fed’s aggressive plans to raise rates rates lead to a recession.
Breakeven rates on five-year Treasury Inflation-Protected Securities (TIPS), a measure of expected average annual inflation over the next five years, stood at 2.94% on Monday, after hitting a high from 3.62% last month.
10-year Treasury yields gained seven basis points to 2,861 percent. Two-year note returns added four basis points to 2.627 percent.