- Gains in financial stocks lifted US shares, while Treasuries fell as concerns about broader contagion from the banking crisis subsided. Following last week's rally, technology stocks fell.
- The S&P 500 rose on Monday, with financial firms rising more than 1%. Energy producers have also made strides. The Nasdaq 100, which is heavy on technology, finished the session 0.7% lower, capping a two-week advance. The two-year Treasury yield has risen above 4%.
- The 10-year Treasury yield increased to around 3.54%, while the interest rate-sensitive two-year yield increased to 4.02%. An inverted yield curve, in which the short-term rate is higher than the long-term rate, continues to predict a downturn.
- Investors will be looking for clues on the US central bank's rate path from data on the personal consumption expenditures price index, which is the Fed's preferred measure of underlying price pressure. On Monday, traders were once again leaning toward a quarter-point rate hike at the Fed’s next meeting.