Treasury yields declined on Monday as investors weighed U.S. inflation trends against global geopolitical risks. The 10-year Treasury yield, a key benchmark for loans like mortgages and auto financing, dropped more than 2 basis points to 5.0729%. Similarly, the 30-year Treasury yield fell 2 basis points to 5.4122%, while the 2-year Treasury note yield remained flat at 4.7273%.
The yield decreases came despite ongoing inflation concerns. Last week’s data from the Bureau of Labor Statistics showed wholesale prices surging 6.3% annually in September, the largest increase since 2022, with consumer costs rising 3.7% annually, exceeding estimates. Meanwhile, energy prices dipped as investors considered the potential for more Russian crude oil entering the market. U.S. West Texas Intermediate futures for November delivery fell 2.05% to $99.33 per barrel, while Brent crude dropped 2.65% to $106.99.
With the Federal Reserve’s next interest rate decision scheduled for October 28, traders now see an above-85% probability that rates will remain unchanged, according to the CME FedWatch tool. Key economic data releases this week include September’s housing starts and new building permits, both due Tuesday from the U.S. Census Bureau.