Treasury yields slightly lower amid lingering growth slowdown fears; Fed meeting in focus

U.S. government debt prices were slightly higher on Monday amid ongoing concerns around a potential slowdown in economic growth. The yield on the benchmark 10-year Treasury note was slightly lower, trading at 2.884 percent, while the yield on the 30-year Treasury bond was just below the flatline, trading at 3.141 percent. Bond yields move inversely to prices. Market focus is largely centered on fears around slowing global growth, following the release of weaker-than-expected data from China and Europe on Friday. Chinese industrial output for November grew 5.4 percent from the previously year, lower than an estimated 5.9 percent, while retail sales rose 8.1 percent last month, falling short of an expected 8.8 percent. European data also disappointed, with the IHS Markit Flash euro zone PMI index falling to 51.7 in December, at its lowest level in four years. The figures for China particularly weighed on market sentiment, given the unresolved trade war between the U.S. and China. The two nations are attempting to settle their differences within a 90-day truce. Andrew Harrer | Bloomberg | Getty Images Jerome Powell, chairman of the U.S. Federal Reserve, exits after speaking during Senator Jack Reeds Rhode Island Business Leaders Day event on Capitol Hill in Washington, D.C., U.S., on Thursday, Sept. 27, 2018. Elsewhere, traders are looking ahead to a crucial Federal Open Market Committee (FOMC) meeting this week, where the U.S. central bank will set interest rates. The Fed is largely expected to hike rates following the conclusion of its meeting on Wednesday, a move that would mark its fourth and final rate hike this year. But evolving worries over declining inflation and growth expectations may put pressure on the central bank, and investors are less optimistic about the number of times the Fed will raise rates next year. Meanwhile, Empire State manufacturing figures for December are due at 8:30 a.m. ET; Decembers housing market index will be released at 10 a.m. ET; and Treasury international capital figures will be published at 4 p.m. ET. In terms of bond auctions, $39 billion in three-month Treasury bills and $36 billion in six-month Treasury bills are due to be auctioned Monday.

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