NEW YORK- US Treasury yields were moderately higher on Monday, with the biggest rise seen at the very short end of the curve, as bond investors await the outcome of debt ceiling talks between President Joe Biden and Republican House of Representatives Speaker
Kevin McCarthy later in the day.
US two-month Treasury bill yields were up 4.4 basis points (bps) at 5.28 percent while those on one-month bills rose 8.7 bps to 5.60 percent
US yields were also lifted by modestly hawkish comments from Federal Reserve officials on Monday.
The big focus remains on talks to lift the US federal government’s $31.4 trillion debt ceiling before it runs out of money to pay its bills by June 1.
McCarthy said debt limit talks were “on the right path” ahead of a meeting with Biden.
Biden and McCarthy will meet at 5:30 p.m. EDT (2130 GMT), the White House said, after their negotiating representatives met for more than two hours on Monday.
“There’s a lot of hope that the meeting with Biden and McCarthy goes well and a deal can be reached soon,” said Gennadiy Goldberg, senior rates strategist, at TD Securities in New York. “We still expect a few more twists and turns. The market, though, is a little more optimistic about the speed at which something can get done.”
Fed officials also spoke on Monday, again striking a hawkish tone, which has been the norm in the past few days. – Reuters
