Traders work at the New York Stock Exchange on Jan. 27, 2026.
NYSE
U.S. Treasury yields moved higher on Monday as investors digested the latest economic data and continued to weigh the impact of President Donald Trump’s Federal Reserve chair pick.
The 10-year Treasury yield rose more than 3 basis points to 4.275%, while the 2-year Treasury note yield gained more than 4 basis points to 3.57%. Meanwhile, the 30-year Treasury yield climbed 3 basis points to 4.902%.
One basis point equals 0.01%, and yields and prices move in opposite directions.
On Monday, the January reading of the ISM manufacturing index came in at 52.6, indicating that factory activity in the U.S. expanded in the period. The latest figure was far above the 48.4 that economists polled by Dow Jones had called for.
The index had been in contraction territory with a reading below 50 for 26 months before the last expansion reading.
“Business confidence at America’s factories jumps at the start of the new year with orders climbing sharply as the economic threats from the federal government shutdown and the distractions from higher import tariffs fall further and further away in the rearview mirror of concerns for corporations,” said Chris Rupkey, FWDBONDS’ chief economist. He added that the data is the “best sign yet that the economy is advancing at a strong pace.”
Investors will now be looking out for the latest Job Openings and Labor Turnover Survey (JOLTS) and ADP employment survey, due this week. The reports provide investors with key insights into the labor market.
The day’s moves in yields come after they held steady Friday following Trump nominating Kevin Warsh to succeed Jerome Powell as the next Fed chair.
The Fed also last week indicated the economic outlook is improving, removing the warning that there are “downside risks to employment” from its regular policy statement — and leading investors to conclude the timeline for any further interest rate reductions this year has been pushed farther out.
— CNBC’s Sarah Min contributed to this report.
