Treasury yields rise slightly to start the first full trading week of October

U.S. Treasury yields kicked off the first full trading week in October slightly higher.

The yield on the benchmark 10-year Treasury note added less than a basis point, rising to 1.469% at 3:45 a.m. ET. The yield on the 30-year Treasury bond also climbed less than a basis point to 2.046%. Yields move inversely to prices and 1 basis point is equal to 0.01%.

TREASURYS
TICKER COMPANY YIELD CHANGE %CHANGE
US3M U.S. 3 Month Treasury 0.043 0.005 0
US1Y U.S. 1 Year Treasury 0.086 0.007 0
US2Y U.S. 2 Year Treasury 0.268 0.004 0
US5Y U.S. 5 Year Treasury 0.947 0.014 0
US10Y U.S. 10 Year Treasury 1.493 0.026 0
US30Y U.S. 30 Year Treasury 2.067 0.027 0

The 10-year U.S. Treasury yield hit 1.56% last week, its highest point since June, with investors concerned about inflationary pressures and tighter monetary policy.

Tim Graf, head of macro strategy for EMEA at SSGA, told CNBC’s “Squawk Box Europe” on Monday that he believed high inflation would persist into the New Year. He said that both base effects and commodity price strength indicated higher prices would persist.

However, he added that what “we haven’t seen yet are wage gains to really sustain inflation; wage gains have improved, but we’ve improved back to basically pre-pandemic levels.”

“I think we need to see that persist to further this rate trade that we’ve seen, that has dented sentiment so much, and we’re just not there yet,” Graf said.

The number of factory orders made in August is due out at 10 a.m. ET on Monday.

However, the main focus for investors this week will be ADP’s September employment change report on Wednesday and the nonfarm payroll report for last month, due out on Friday.

In terms of the nonfarm payroll report, economists have forecast that around 475,000 jobs were created last month, according to an early consensus figure from FactSet. Just 235,000 payrolls were added in August, about 500,000 less than expected.

Auctions will be held on Monday for $42 billion of 13-week bills and $42 billion of 26-week bills.

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