10-year Treasury yield falls to two-month low to start the week

  • St. Louis Fed President James Bullard and Dallas Fed President Robert Kaplan are due to speak on a Official Monetary and Financial Institutions Forum panel at 9:00 a.m. ET.
  • Auctions are due to be held Monday for $57 billion of 13-week bills and $54 billion of 26-week bills.

The 10-year U.S. Treasury yields fell to around 1.43% on Monday morning, its lowest point since early March.

The yield on the benchmark 10-year Treasury note fell less than a basis point to 1.438% at 3:55 a.m. ET. Meanwhile, the yield on the 30-year Treasury bond rose to 2.043%. Yields move inversely to prices.

Treasurys

Treasury yields have drifted lower, despite a brief rise, following the Federal Reserve's latest policy update last week.

The Fed raised its inflation forecast, while a dot plot of individual central bank members' expectations on policy, signaled that an interest hike could happen sooner than expected, in 2023.

St. Louis Fed President James Bullard told CNBC on Friday that he expected an initial rate increase to happen even sooner in 2022.

"We're expecting a good year, a good reopening. But this is a bigger year than we were expecting, more inflation than we were expecting," Bullard told CNBC's "Squawk Box." "I think it's natural that we've tilted a little bit more hawkish here to contain inflationary pressures."

Bullard is not a voting member this year on the Federal Open Market Committee but will get a vote next year. 

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Bullard is set to speak again on Monday, along with Dallas Fed President Robert Kaplan, on a Official Monetary and Financial Institutions Forum panel at 9:00 a.m. ET. New York Fed President John Williams is expected to deliver remarks at a Midsize Bank Coalition of America event Monday afternoon.

The Chicago Fed National Activity Index for May, which tracks overall economic activity and related inflationary pressures, is due out at 8:30 a.m. ET.

Auctions are due to be held Monday for $57 billion of 13-week bills and $54 billion of 26-week bills.

CNBC's Hannah Maio and Jeff Cox contributed to this report.

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