U.S. Treasury yields moved lower in volatile trading on Monday to start the final week of October
The yield on the benchmark 10-year Treasury note fell nearly 2 basis points to 1.636%. The yield traded as high as 1.673% earlier in the session. The yield on the 30-year Treasury bond slipped less than 1 basis point to trade at 2.086%. Yields move inversely to prices and 1 basis point is equal to 0.01%.
The move in yields comes after Treasury Secretary Janet Yellen said in an interview with CNN on Sunday that she expected inflation levels to fall back to the more acceptable 2% level in the middle of the second half of 2022.
Ben Gutteridge, director of Invesco Model Portfolio Services, told CNBC's "Squawk Box Europe" on Monday that he agreed with Yellen's view that "inflationary pressures do seem to be persisting more than most had anticipated and will likely take a little bit more time to settle down, as a result."
David Zervos, chief market strategist at Jefferies, said on CNBC's "The Exchange" that he agreed with Yellen that the U.S. was not about to "lose control" of inflation.
"I think it's a really tough sell to say that we're going into something like a significant period of much higher than 2% inflation, or even modestly higher than 2% inflation," Zervos said.
Auctions were held on Monday for $54 billion of 13-week bills and $48 billion of 26-week bills.