After seeing a downturn during last Friday's session, treasuries made a slight recovery during Monday's trading. Bond prices dropped initially but managed to maintain a firm increase. As a result, the yield on the key ten-year note, inversely related to its price, lowered by 2.3 basis points to 4.481 percent.
The slight pickup in treasuries occurred among renewed hopes for an interest rate cut by the Federal Reserve in the approaching month. Despite this, the buying interest stayed low ahead of key inflation data due to be released this week.
This week, the Labour Department plans to present its reports on producer and consumer price inflation on Tuesday and Wednesday, respectively. Economists forecast that producer prices will see a 0.3 percent increase in April, following a 0.2 percent rise in March. Concurrently, the annual rate of growth is predicted to rise to 2.2 percent from 2.1 percent.
Consumer prices are anticipated to increase by 0.4 percent in April, mirroring March's rise. Core consumer prices, excluding food and energy costs, are expected to increase by 0.3 percent, following a 0.4 percent increase in March.
It's projected that the annual rate of consumer price growth will decrease to 3.4 percent in April from 3.4 percent in March. Additionally, the annual rate of core consumer price growth is expected to decelerate to 3.6 percent from 3.8 percent.
On Tuesday, attention is likely to be centered on the Labor Department's report on producer price inflation and Federal Reserve Chair, Jerome Powell's discussion with De Nederlandsche Bank President, Klaas Knot.