U.S. Treasury yields saw an increase on Monday as investors eagerly awaited key economic data and analyzed the latest insights into inflation. The yield on the 10-year Treasury rose by 14 basis points, reaching 4.483%, while the 2-year Treasury yield climbed more than 5 basis points to 4.779%.

Investors carefully considered the most recent economic data and looked ahead to the labor market insights expected this week. On Friday, it was reported that the personal consumption expenditures price index indicated a slowdown in inflation, reaching its lowest annual rate in over three years for the month of May. The core PCE, which excludes food and energy, rose by 0.1% on a monthly basis in May and increased by 2.6% year-over-year, aligning with previous Dow Jones estimates. Headline inflation, including food and energy, remained unchanged from the previous month and rose 2.6% on an annual basis, meeting expectations.

These data points are essential as Federal Reserve officials have repeatedly stated their need for more evidence regarding inflation and the overall state of the economy before making decisions on interest rate cuts. Analysts are eagerly awaiting further insights into the economy, which will arrive this week through a series of labor market data releases. This includes figures for job openings in May, ADP's latest private payrolls report, and the June jobs report, featuring nonfarm payrolls.

Should these numbers indicate an easing in the labor market, hopes for potential interest rate cuts could be further boosted. Investors are closely monitoring this data as it will provide crucial information for their investment decisions moving forward.