Treasury yields ease lower ahead of inflation data later this week

U.S. Treasury yields were slightly lower on Monday as traders continued to weigh in on strong numbers in the latest jobs report and awaited inflation data due later this week.

The benchmark 10-year Treasury yield was down about a basis point to around 3.0878%, while the 30-year Treasury yield was also down a basis point to 3.2539%. Yields move inversely with prices and the basis point is equal to 0.01%.

Investors await key inflation data this week. The consumer price index for June will be released on Wednesday and is expected to show headline inflation, including food and energy, rising above May’s 8.6% level.

Also on the data front, the producer price index for June is due on Thursday and the University of Michigan’s July consumer sentiment report will be released on Friday. No major data releases on Monday.

On Friday, investors soaked up the June jobs report, which showed that jobs grew at a faster pace than expected. Nonfarm payrolls increased by 372,000 last month, according to the Bureau of Labor Statistics. Economists predicted the U.S. economy would add 250,000 jobs, according to Dow Jones.

Yields jumped on Friday after the release, with the report likely to keep the US Federal Reserve more aggressive on its rate hike path.

— CNBC’s Tanaya Machil, Carmen Reinicke and Jeff Cox contributed to this report.