Traders work at the New York Stock Exchange on January 27, 2026.
New York Stock Exchange
U.S. Treasury yields rose Monday as investors digested the latest economic data and continued to weigh the impact of President Donald Trump’s choice of Federal Reserve chairman.
THE Cash flow at 10 years the yield increased by more than 4 basis points to 4.283%, as did the Cash flow over 2 years note yield at 3.576%. Meanwhile, the Cash flow over 30 years the yield also climbed more than 4 basis points to 4.914%.
One basis point is 0.01%, and yields and prices move in opposite directions.
Monday, January reading of the ISM manufacturing index arrived at 52.6indicating that factory activity in the United States expanded during the period. The latest figure was well above the 48.4 recommended by economists surveyed by Dow Jones.
The index was in contraction territory with a reading below 50 for 26 months before the last expansion reading.
“Business confidence in U.S. factories is jumping further into the new year with orders rising sharply as economic threats from the federal government shutdown and distractions from rising import tariffs recede further and further from the rearview mirror of business concerns,” said Chris Rupkey, chief economist at FWDBONDS. He added that the data is “the best sign yet that the economy is growing at a sustained pace.”
Investors will now wait for ADP’s latest employment survey, due this week, to get a snapshot of the state of the labor market. However, the Bureau of Labor Statistics employment report for January – which was originally scheduled to be released on Friday – will be delayed because of the partial government shutdown.
The day’s yield movements occur after kept stable Friday after Trump nomination of Kevin Warsh to succeed Jerome Powell as president of the Fed.
The Fed also indicated last week that the economic outlook was improving, removing the warning that there would be risks. “negative risks for employment” of its regular policy statement – and lead investors to conclude the timetable for any further interest rate cuts this year has been pushed back further.
— CNBC’s Sarah Min contributed to this report.
