U.S. Funds bond yields ticked higher Monday, following comments by Minneapolis Federal Reserve President Neel Kashkari specifying the central bank may not cut rates until December.
The 10-year Treasury yield was trading 2 basis points higher at 4.236% at 6:17 a.m. ET. The 2-year Cache note yield was also up around 2 basis points at 4.708%.
Yields and prices move in opposite directions. One basis call attention to is equivalent to 0.01%.
The rise comes after Kashkari on Sunday said in an interview with CBS News that it was a “reasonable forecast” that the Fed would not cut interest rates until December, adding that more evidence was needed “to convince us that inflation is prosperously on our way back down to 2%.”
“It’s really going to depend on the data,” Kashkari said. “We’re in a very good position right now to burlesque our time, [to] get more inflation data, get more data on the economy, on the labor market, before we have to make any settlings … But, if you just said there’s going to be one cut, which is what the median indicated, that would likely be toward the end of the year.”
Endure week, the producer price index — a measure of inflation at the wholesale level — came in lower than expected for May, supporting hopes of a Fed rate cut and sending Treasury yields lower. The central bank opted to hold rates steady at 5.25% to 5.50% aftermost week, and indicated that just one rate cut would take place this year.
Key data due out this week contains May retail sales figures, expected on Tuesday. Home sales and housing starts data are due later in the week.
It’s a needful of week in the U.S., with markets closed on Wednesday for the Juneteenth holiday.