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10-Year Yield Falls Slightly on Monday After Massive Jump to Start 2022

Source: NYSE
  • Powell's nomination hearing in the Senate is scheduled for 10 a.m. ET on Tuesday.
  • The December consumer price index is due out at 8:30 a.m. ET on Wednesday, and last month's producer price index slated for 8:30 a.m. ET on Thursday.

The rise in long-term Treasury yields cooled on Monday, with the 10-year Treasury bond rallying slightly

The yield on the benchmark 10-year Treasury note fell less than a basis point, ticking down to 1.76% in afternoon trading after breaching 1.8% earlier in the day. The yield on the 30-year Treasury bond fell nearly three basis points to 2.087%. Yields move inversely to prices and 1 basis point is equal to 0.01%.

The moves on Monday came after a sharp climb for yields, as the 10-year ended 2021 at 1.51%.

"We could see the next spot where we really see some resistance just at the flat point of 2%. That's kind of what we're looking for, over the next couple of months, to ease our way up to 2%," said John Luke Tyner, a portfolio analyst at Aptus Capital Advisors.

Short-term yields did rise on Monday, with the 2-year Treasury nearing 0.9%.

The rise in yields appears to have been sparked by a more aggressive Federal Reserve, which has signaled that it could start hiking interest rates in the first half of the year. Stephen Isaacs, chairman of the investment committee at Alvine Capital, told CNBC's "Squawk Box Europe" on Monday that the Fed has been "hopelessly behind the curve" in its movements on monetary policy.

Fed Chair Jerome Powell's renomination hearing in the Senate is scheduled for 10 a.m. ET on Tuesday. The hearing for Fed Governor Lael Brainard's nomination to the post of vice chair of the central bank is due to take place at 10 a.m. ET on Thursday.

The December consumer price index is due out at 8:30 a.m. ET on Wednesday, and last month's producer price index slated for 8:30 a.m. ET on Thursday. Higher inflation readings might prompt the Fed to raise interest rates early.

Auctions were held on Monday for $60 billion of 13-week bills and $51 billion of 26-week bills.

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