On Monday, Treasury yields fell, with the 10-year note yield decreasing to 4.7120% and the 30-year note yield to 5.2497%. The 2-year note yield also saw a slight drop to 4.2209%. This decline comes as the market prepares for Warsh's keynote address later this week, which is expected to address ongoing inflation pressures and the U.S. national debt, currently at $40 trillion.
Last week, borrowing costs reached multi-decade highs following the Treasury Department's announcement of a debt buyback program aimed at alleviating pressure on long-term yields. The market had initially reacted to this news with a drop in yields, but they rebounded higher.
Investors are also awaiting key economic data releases, including the July core PCE price index and the second quarter GDP estimate, which could influence the Fed's future decisions