NEW YORK — U.S. government bond yields
dipped on Monday with markets looking ahead to consumer
inflation data on Tuesday that is expected to show a continuing
slowdown in the pace of price increases.
Yields are seen remaining in a tight range after last week’s
10- and 30-year auctions were met with strong demand.
“It will likely take downside surprises for CPI and retail
sales to register in the bond market in the next five days,”
said Jim Vogel, head of fixed income strategy and commentary at
FHN Financial Capital Markets, in a client note.
The core reading of the U.S. consumer price index is
expected to show a rise of 0.3% in August, down from 0.5% the
previous month and 0.9% in June.
“The numbers are important to the run up to the fourth
quarter, but they are not pivotal by themselves. Any weakness
will be explained away by the (COVID-19) Delta wave,” Vogel
Shortages of basic materials and parts have created
bottlenecks, and price increases, across various supply chains.
The U.S. Federal Reserve is paying close attention to price
pressures as it mulls when to begin to reduce its massive bond
holdings and how soon to begin lifting rates from near zero. It
also remains on the lookout for any signs that price pressures
There are no scheduled Federal Reserve speakers this week
ahead of next week’s FOMC meeting.
The yield on 10-year Treasury notes was down 2
basis points to 1.321%.
The yield on the 30-year Treasury bond was down
2.7 basis points to 1.907%.
The two-year U.S. Treasury yield, which typically
moves in step with interest rate expectations, was down 0.4
basis point at 0.213%.
September 13 Monday 10:31 AM New York / 1431 GMT
Price Current Net
Yield % Change
Three-month bills 0.0475 0.0482 0.000
Six-month bills 0.05 0.0507 0.000
Two-year note 99-213/256 0.2109 -0.006
Three-year note 99-208/256 0.438 -0.010
Five-year note 99-198/256 0.7967 -0.019
Seven-year note 100-44/256 1.0993 -0.021
10-year note 99-92/256 1.3191 -0.022
20-year bond 98-156/256 1.8336 -0.026
30-year bond 102-44/256 1.9044 -0.030
DOLLAR SWAP SPREADS
Last (bps) Net
U.S. 2-year dollar swap 10.00 0.00
U.S. 3-year dollar swap 11.25 0.25
U.S. 5-year dollar swap 9.50 0.00
U.S. 10-year dollar swap 2.00 -0.75
U.S. 30-year dollar swap -26.00 -0.25
(Reporting by Rodrigo Campos; Editing by Steve Orlofsky)