The yield on the benchmark 10-year Treasury rose less than 1 basis point to 2.797%, and the yield on the 30-year Treasury fell marginally to 3.096%. The yield on the short-term 2-year Treasury note also rose about one basis point to 3.215%. Returns move inversely to prices and the basis unit is equal to 0.01%. Data on housing starts, mortgage applications and building permits will be released this week, which investors will watch closely for key insight into the construction industry’s response to a slowdown in demand that has been reported since June. In particular, the permits will indicate the direction of the housing market for the rest of the year, analysts say. Data last week showed a slight slowdown in the explosive rise in U.S. consumer prices, which rose 8.5 percent year-on-year in July — slightly less than expected due to lower oil prices. Markets seem to think this may mean a slowdown in the Fed’s tightening cycle, although the Fed has yet to show it. The four-week and eight-week auctions are scheduled for Tuesday.
