Treasuries See Further Downside As Inflation Data Looms

(RTTNews) - Treasuries showed a notable move to the downside during trading on Monday, extending the pullback seen in the previous session.

Bond prices regained some ground after coming under pressure in early trading but remained firmly negative. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, climbed 4.6 basis points to 4.424 percent.

The continued weakness among treasuries came as traders looked ahead to the release of closely watched inflation data later in the week.

The Labor Department is scheduled to release its reports on consumer and producer inflation in the month of March on Wednesday and Thursday, respectively.

Economists currently expect consumer prices to rise by 0.3 percent in March following a 0.4 percent increase in February.

Core consumer prices, which exclude food and energy prices, are also expected to climb by 0.3 percent in March after rising by 0.4 percent in February.

The annual rate of consumer price growth is expected to accelerate to 3.4 percent in March from 3.2 percent in February, while the annual rate of core consumer price growth is expected to slow to 3.7 percent for 3.8 percent.

Producer prices are expected to rise by 0.3 percent in March after climbing by 0.6 percent in February, while the annual rate of producer growth is expected to jump to 2.3 percent from 1.6 percent.

The inflation data could have a significant impact on the outlook for interest rates, as Federal Reserve officials have repeatedly said they need greater confidence inflation is slowing before cutting rates.

Wednesday will also see the release of the minutes of the Fed's latest monetary policy meeting, which could also shed additional light on officials' thinking on rates.