USA: Treasury Yields Move Lower.

The yield on the US 10-year Treasury note edged down to 4.21% on Monday, reversing earlier gains as investor sentiment improved ahead of a heavy slate of economic data due this week. The releases are expected to help assess the health of the US economy and refine expectations for the Fed’s policy outlook. Key data include the delayed employment report, alongside CPI and retail sales. Markets currently expect the Fed to leave interest rates unchanged in March, with the first rate cut potentially arriving in June and another possible move in September. Adding to the more constructive tone, inflation expectations for the year ahead fell to their lowest level in six months in January, while consumers also became less concerned about employment prospects. Earlier in the session, Treasury yields had moved higher following reports that Chinese regulators urged domestic banks to curb their holdings of US Treasuries, citing concerns over concentration risks and market volatility.