BY GERTRUDE CHAVEZ-DREYFUSS
NEW YORK—US Treasury yields were marginally higher on Monday, after data showed that the services sector in the world’s largest economy remained resilient last month, with prices paid, an inflation gauge, hitting a two-year high.
Volume was lighter than usual, with financial markets closed in the UK, Japan, Hong Kong and mainland China.
The US services sector report, meanwhile, reinforced expectations that the Federal Reserve will take its time in cutting interest rates amid signs of firmer inflation.
The Institute for Supply Management (ISM) said on Monday its nonmanufacturing purchasing managers index (PMI) increased to 51.6 last month from 50.8 in March. Economists polled by Reuters had forecast the services PMI dipping to 50.2.
The survey’s measure of prices paid for services inputs jumped to 65.1, the highest reading since January 2023 and followed 60.9 in March.
Treasury yields, however, briefly pared gains after the US three-year note auction came out well-received. The note was priced at a yield that was lower than expectations, suggesting there was enough demand to absorb the $58 billion issuance.
