Treasury yields rise to start the week, 30-year yield tops 2%


  • On Monday, Fed Governor Lael Brainard is due to speak about the economic outlook at the 63rd National Association for Business Economics annual meeting at 12:50 p.m. ET.
  • Auctions are scheduled to be held on Monday for $42 billion of 13-week bills, $42 billion of 26-week bills, $60 billion of 2-year notes and $61 billion of 5-year notes.

U.S. Treasury yields bounced higher on Monday morning, continuing their upward momentum from last week as the Federal Reserve moves closer to easing off its pandemic-era policies.

The yield on the benchmark 10-year Treasury note climbed by more than 2 basis points to 1.487% at 7:05 a.m. ET. The yield on the 30-year Treasury bond rose 2 basis points to 2.008%. Both measures are trading near their highest levels in roughly three months. Yields move inversely to prices and 1 basis point is equal to 0.01%.

Treasury yields rose last week after the Fed hinted that it may soon taper its asset purchasing program. Additionally, a rising number of Fed officials now see a rate hike in 2022, according to projections released by the central bank last week.

Fed Chairman Jerome Powell is due to speak before the U.S. Senate on Tuesday and then at the European Central Bank Forum on Wednesday. Investors will likely be listening in for further clues as to when the Fed plans to reduce its bond-buying program.

On Monday, Fed Governor Lael Brainard is due to speak about the economic outlook at the 63rd National Association for Business Economics annual meeting at 12:50 p.m. ET.

August's durable goods orders data is due out at 8:30 a.m. ET.

Meanwhile, investors are also keeping an eye on the progress of the $1 trillion infrastructure bill in Washington.

House Speaker Nancy Pelosi said Sunday that she expects the bill to pass this week, but voting on the legislation may be pushed back from its original Monday timeline.

Congress must pass a new budget by the end of September to avoid a shutdown, and lawmakers must also figure out a way to increase or suspend the debt ceiling in October before the U.S. would default on its debt for the first time.

Auctions are scheduled to be held on Monday for $42 billion of 13-week bills, $42 billion of 26-week bills, $60 billion of 2-year notes and $61 billion of 5-year notes.

CNBC's Yun Li contributed to this market report.