US Treasury yields started the first full trading week in October slightly higher.
The benchmark 10-year Treasury bill yield rose less than a basis point, reaching 1.469% at 3:45 am ET. The yield on 30-year Treasuries also climbed less than a basis point to 2.046%. Yields move in the opposite direction of prices and 1 basis point equals 0.01%.
The 10-year US Treasury yield hit 1.56% last week, its highest level since June, as investors worried about inflationary pressures and tightening monetary policy.
Tim Graf, head of macro strategy for EMEA at SSGA, told CNBC’s “Squawk Box Europe” on Monday that he believed high inflation would persist until the New Year. He said base effects and the strength of commodity prices indicated that higher prices would persist.
However, he added that what “we haven’t seen yet are wage gains to really support inflation; wage gains have improved, but we are back to essentially pre-pandemic levels.”
“I think we have to see that persist to move this rate trade forward that we’ve seen, which has rocked sentiment so much, and we’re just not there yet,” Graf said.
The number of factory orders placed in August is expected at 10 a.m. ET on Monday.
However, the main focus for investors this week will be ADP’s September employment development report on Wednesday and last month’s non-farm payroll report, due on Friday.
As for the non-farm payroll report, economists predicted about 475,000 jobs were created last month, according to an early consensus figure from FactSet.. Only 235,000 payrolls were added in August, about 500,000 less than expected.
Auctions will take place on Monday for $ 42 billion in 13-week bills and $ 42 billion in 26-week bills.