The 10-year US Treasury yield dropped sharply on Monday, falling over 2 basis points to 4.059%. That move came just days after it hit a major high above 5%, a level not seen since July.
Now that might not sound huge, but in bond markets, it’s actually a meaningful dip, especially since the 2-year Treasury yield is also plunging, down over 2 basis points to 3.486%.
And the 30-year Treasury yield tanked even harder, shedding over 4 basis points to 4.726%. For the uninitiated, a single basis point equals 0.01%, and yields move opposite to prices, always.
Investors are awaiting two critical inflation reports this week for more insight into the health of the economy, after weaker-than-expected hiring data on Friday. The producer price index (PPI) report for August is due out Wednesday morning, followed by the consumer price index (CPI) on Thursday.
The core CPI, which strips out food and energy, is expected to rise 0.3%…
