US Treasury yields hike ahead of Fed meeting; Recession risk in focus

US Treasury yields rose on Monday as investors geared up for a big week of corporate earnings and a key policy decision from the Federal Reserve.

Yield on Benchmark 10 year treasury note jumped 2 basis points to 2.807%, while the yield 30 Year Treasury Bond was up 5 basis points at 3.049%. Yields move inversely to prices and equal one basis point to 0.01%.

yield on 2 year note was roughly flat at 2.9930%, maintaining an inversion of the closely watched 2-year/10-year yield curve that markets often interpret as a sign of an impending recession.

Much of this week’s focus will be on the US Federal Reserve’s two-day policy meeting, culminating on Wednesday, with economists expecting a roughly 75 basis point hike in interest rates.

The Fed is attempting to contain inflation on the back of slowing growth, as evidenced by weaker-than-expected data on business activity and jobs published last week.

Treasury Secretary Janet Yellen told NBC on Sunday that although there are signs the US economy is at risk of a recession, a recession is not inevitable.

Wall Street will be guided by a flood of major corporate earnings reports this week, including those from tech behemoths Alphabet, Amazon, Apple and Microsoft.

Auctions will be held on Monday for $54 billion of 13-week Treasury bills and $42 billion of 26-week bills, as well as $45 billion of 2-year notes.