Treasury yields were mixed as investors weighed the inflation outlook

US Treasury yields were mixed on Monday, as investors awaited key inflation data and fretted over the potential impact on the Federal Reserve’s future monetary policy decision.

By 5:21 a.m. ET, the 10-year Treasury yield was down less than 1 basis point at 3.736%. The 2-year Treasury yield, meanwhile, was up 2.6 basis points to trade at 4.539%.

Yields and prices move in opposite directions, and one basis point is equivalent to 0.01%.

Investors assess the outlook for inflation and monetary policy, including the possibility of further rate hikes by the Fed.

Key inflation data, including the consumer price index report for January, is expected for release on Tuesday. Many investors expect a number that indicates inflation is easing.

The Federal Reserve has worked to cool the economy through policy measures including raising interest rates. Concerns have spread over the pace of rate hikes and the prospect of keeping them higher will drag the US economy into recession. Many investors expect the Fed to stop raising interest rates this year.

Last week, several central bank officials signaled that interest rates could go higher, but that they would base any policy decisions on economic data.

Fed Governor Michelle Bowman will deliver remarks on Monday, followed by a series of Fed speakers throughout the week. Investors will be scanning their comments for new signals.

No major economic data is expected on Monday.