Treasury Traders Enter Abridged Week With Inflation Top of Mind

Weary bond investors enter a holiday-shortened week facing fresh US inflation readings at a time when consumers are already anticipating steeper prices pressures given President Donald Trump’s tariff plans.

Long-term Treasury yields catapulted higher last week after the House pushed through President Trump’s signature legislative package, which features a bevy of new tax breaks and added to worries around the nation’s fiscal outlook. Then on Friday yields slipped anew as tariff tensions heated up again after the president threatened a 50% tariff on goods from the European Union starting on June 1.