U.S. Treasury yields were little changed Monday as traders pored through fresh commentary that could lead to clues on when the Federal Reserve may start cutting rates.
The yield on the 10-year Treasury was down nearly 2 basis point at 4.481%, while the 2-year Treasury yield added less than 1 basis point, to 4.81%. Yields and prices move in opposite directions. One basis point equals 1/100th of a percent, or 0.01%.
Richmond Fed President Tom Barkin on Monday said that policymakers have time to gain greater confidence that inflation is moving towards the central bank’s 2% target, particularly given the strength in the labor market.
Separately, a New York Federal Reserve survey released Monday showed the share of renters who believe that they one day will be able to afford a home fell to a record low 13.4%. Respondents expected rental costs to increase 9.7% over the next year.
The report and Barkin’s comments came after a weaker-than-expected jobs report brought back hope for lower Fed rates.
U.S. payrolls rose by just 175,000 last month, the Bureau of Labor Statistics said on Friday, short of the Dow Jones estimate from economists of 240,000. The unemployment rate rose to 3.9%, against an estimate that called for it to hold steady at 3.8%. Wage growth was also less than expected, the report showed.
Investors still remain uncertain about how many rate cuts, if any, will take place this year and when they might begin. Many now forecast fewer cuts that may not start until later in the year.
— CNBC’s Jeff Cox and Samantha Subin contributed to this report.