Treasuries fell on bets that the Federal Reserve will keep interest rates high for longer. Meanwhile, the rise of the yen topped the global scene after statements by the Governor of the Bank of Japan that strengthened the possibilities of tightening monetary policy there.
Treasury bonds fell slightly over several periods on Monday, as traders awaited US inflation data scheduled to be published later this week, after the economy continued to defy the pessimistic expectations that surrounded it. The yield on two-year Treasury bonds (which are highly sensitive to monetary policy changes) rose above 5%, while the yield on 10-year bonds jumped by almost three basis points to 4.29%.
US Treasury Secretary Janet Yellen expressed her growing confidence that the United States will be able to curb inflation without severely harming the labor market, praising data that shows a steady slowdown in inflation and a new influx in the number of job seekers.
