U.S. Treasury Yields Decline as Oil Prices Drop

U.S. Treasury yields declined on Monday, with the two-year yield decreasing 0.2 basis points to 4.519% and the 10-year yield falling 0.4 basis points to 4.854%. The downward movement coincided with a 1.7% drop in Brent oil for the January contract, which fell to $96.61 a barrel.

This shift follows a period of rising yields triggered by strong employment data. These economic indicators have led money markets to price in a 78% probability that the Federal Reserve System will implement an interest rate hike in December.

Market participants are now focusing on October consumer price inflation data scheduled for release on Tuesday. This upcoming report is expected to determine the next trend for the bond market.