The yields on the 10-year and 2-year Treasurys fell on Monday as markets began a new quarter and investors looked ahead to the release of PMI data.
The yields on the 10-year and 2-year Treasurys fell on Monday as markets began a new quarter and investors looked ahead to the release of Purchasing Managers' Index data for the manufacturing sector.The yield on the policy-sensitiveYields and prices have an inverted relationship. One basis point is equivalent to 0.01%.
All eyes will be on the release of manufacturing PMI data for September. That will give traders insight into factory growth, which has in recent months been at low levels close to those seen during the Covid pandemic in 2020. Manufacturing PMI data measures the amount of goods produced, and therefore reflects whether demand has increased or weakened. This will provide insights into how the economy is faring as inflation continues to rise.Several Federal Reserve speakers are also due to make comments. In remarks last week, the central bankers had struck a hawkish tone and broadly indicated that they would continue to fight persistently high inflation by hiking interest rates.
That has raised concerns about a recession among some investors who fear the central bank is hiking rates too quickly.