The 10-year US Treasury yield topped 2.76% Monday morning, while 5-year and 30-year rates remained inverted.
The yield on the benchmark 10-year Treasury bond rose 4 basis points to 2.7629% as of 4am ET Monday, after hitting 2.7741% on Sunday evening. The 30-year Treasury yield rose 1 basis point to 2.7560%, while the 5-year rate rose 5 basis points to 2.8154%. Yields move inversely with prices and 1 basis point equals 0.01%.
Treasury yields have risen recently amid concerns that rising inflation and plans by the US Federal Reserve to aggressively tighten monetary policy could slow economic growth.
These fears have caused government bond yields to reverse as investors have sold short-dated government bonds in favor of longer-dated debt, as has happened in the past before recessions. However, investors have been careful to note that yield curve inversion is no guarantee of a recession and that this signal can flash red for up to two years before an economic downturn hits.
Paul Jackson, global head of asset allocation research at Invesco, told CNBC’s Squawk Box Europe on Monday that while the impact of rising costs is beginning to be felt in the economy, he doesn’t think a recession is on the horizon this year view is .
He expects the global economy to grow about 3% instead of the 4% previously forecast, but added that he believes recession fears are something that “is going to come back from time to time this year and we’re going to be worried about it.”
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Cleveland Fed President Loretta Meester said on CBS’s Face the Nation Sunday that she still believes the Fed can control inflation without causing major damage to the economy.
Two sets of inflation data are due out this week, with March’s consumer price index due to be released on Tuesday and last month’s producer price index to follow on Wednesday.
There are no major economic data releases scheduled for Monday.
Fed Governor Michelle Bowman will address a FedListens meeting in Nashville, Tenn. on Monday at 9:30 a.m. ET.
Investors will also keep an eye on developments in Ukraine. Russia’s invasion of the country has caused volatility in oil and other commodity markets, which in turn has disrupted stock prices.
On Monday, $57 billion in 13-week bills, $48 billion in 26-week bills and $46 billion in 3-year bills are scheduled to be auctioned.
— CNBC’s Jesse Pound contributed to this market report.