U.S. Treasury yields rose on Monday as investors monitored debt ceiling deal negotiations and assessed what could be next for Federal Reserve interest rate policy after mixed messages from officials.
The 10-year Treasury added nearly 3 basis points to 3.721%. The yield on the 2-year Treasury was last up about 4 basis points at 4.328%.
Yields and prices move in opposite directions and one basis point equals 0.01%.
Treasurys
Debt ceiling discussions are set to continue Monday, with President Joe Biden and House Speaker Kevin McCarthy expected to meet at 5:30 p.m. ET after talks stalled late Saturday as the two sides struggled to come to an agreement.
The U.S. risks defaulting on its debt as soon as June 1 if lawmakers fail to agree on a resolution.
McCarthy said Monday that "decisions have to be made" during his discussion with Biden, and an agreement needs to be reached this week in order to pass it in the House, move it to the Senate and hit the June 1 deadline.
Investors also weighed the outlook for central bank interest rate policy after Fed officials gave mixed messages about whether rate hikes should be halted last week.
Minutes from the Fed's last meeting due out Wednesday could offer further insight into the central bank's rate path.