Yields fall as Treasury weighs buyback shift
TLT•Rates, oil and debt sale schedule
The development further complicates the outlook for interest rates, with several Fed policymakers having called for rate hikes amid persistently elevated inflation.
Personal Consumption Expenditures data for July, due to be released on Wednesday, will offer the next read on whether price pressures are easing. Markets will then turn to Fed Chairman Kevin Warsh's speech on Friday at the central bank's annual Jackson Hole symposium for any signals that the Fed may take a more hawkish stance on inflation.
Fed funds futures traders are pricing 40% odds of a rate increase at the central bank's policy meeting next month, rising to 73% by December.
The 2-year note US2YT=RR yield, which typically moves in step with Fed interest rate expectations, fell 0.46 basis points to 4.229%. The yield on benchmark U.S. 10-year notes US10YT=RR fell 3.59 basis points to 4.702%, from 4.738% late on Friday.
