US Treasury yields rally as investors await auctions

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U.S. government debt yields were sharply higher Monday morning, as investors returned to riskier assets amid broadly more upbeat market sentiment.

U.S. Markets Overview: Treasurys chart

At around 02:30 a.m. ET, the yield on the benchmark 10-year Treasury note, which moves inversely to price, was higher at around 1.5724%, while the yield on the 30-year Treasury bond was also higher at around 2.0559%.

Market focus is largely attuned to global central banks, as hopes of more stimulus from major economies such as China and Germany soothed investors’ concerns about a global economic downturn.

On Saturday, China’s central bank unveiled a key interest rate reform to help drive borrowing costs lower for companies.

Meanwhile, market participants are likely to closely monitor the Federal Reserve‘s Jackson Hole symposium this week in order to get greater clarity on the future path of interest rates.

To be sure, investors see about a 74% chance of a quarter-point rate cut next month.

The U.S. Treasury is set to auction $45 billion in 13-week bills and $42 billion in 26-week bills on Monday. No major economic data reports are scheduled to be released.

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