The 10-year U.S. Treasury yield rose on Monday morning with investor attention turning to inflation data due later in the week.
The yield on the benchmark 10-year Treasury note added 4 basis points at 1.493% by 2:45 p.m. ET. The yield on the 30-year Treasury bond was little changed at 1.884%. Yields move inversely to prices and 1 basis point is equal to 0.01%.
Federal Reserve Vice Chairman Richard Clarida admitted Monday inflation is running hotter than the central bank’s target.
“Realized inflation so far this year represents to me much more than a moderate overshoot of our 2% longer-run goal, and I would certainly not consider a repeat performance a policy success,” Clarida said during a virtual conference presented by the Brookings Institution.
Also Monday, Fed governor and vice chairman for bank supervision Randal Quarles announced he is resigning effective in December.
Despite a strong October jobs report, Treasury yields fell on Friday. The U.S. Labor Department reported that 531,000 jobs were created last month, well above the forecast of 450,000 payrolls.
The Federal Reserve is eyeing both jobs and inflation data to guide its timeline on normalizing monetary policy. The Fed announced last week that it would start this process by reducing its bond-buying program by the end of November.
The October producer price index and consumer price index are slated for release on Tuesday and Wednesday, respectively.
