The U.S. Treasury yields surged on Monday morning, as traders reacted to the rising inflation data last week and contemplated a possible recession.
The 2-year rate jumped more than 3.1535%, reaching its highest level since 2007. The benchmark 10-year Treasury yield also rose, at about 3.1762%. The yields move opposite to the price, and a basis point is equal to 0.01%.
A highly anticipated Federal Reserve meeting comes this week, with the central bank expected to announce at least a half-point rate hike. The Fed has already raised rates twice this year, including a 50-basis-point increase in May in an effort to delay the inflation surge.
Last week, the U.S. consumer price index rose by 8.6% in May on a year-over-year basis, its fastest increase since 1981. Economists expected a gain of 8.3%, and the so-called core CPI, which strips out volatile food and energy prices, rose 6%.