US Treasury Yields Surge as Inflation Jitters Rekindled

US Treasury yields rose on Monday as investors braced for this week's inflation figures. The increase in yields comes after last Friday's worse-than-expected Nonfarm Payrolls report, which saw the economy shed 23K jobs and downward revisions to May and June numbers.

The decline in job growth has trimmed hawkish bets on the Federal Reserve, with investors now expecting rates to remain steady at 3.50%-3.75% by year-end. According to Prime Terminal data, the chances of a rate hike are now at 35%, while keeping rates unchanged stands at 65%

The US Dollar Index (DXY) has gained 0.20% to 99.81 as traders prepare for the release of July's Consumer Price Index (CPI), which is expected to decline slightly from 3.5% to 3.4% YoY.