The benchmark 10-year yield was last down 5.4 basis points at 1.4816%. Last week, it notched its largest weekly gain since March, but has remained below 1.6% since early June.
The market was rallying a bit, perhaps on relatively low volumes and liquidity and without being propelled by any news as it heads into the long July 4th holiday weekend, according to Subadra Rajappa, head of U.S. rates strategy at Societe Generale.
Dollar edges higher as investors await U.S. payrolls
The U.S. dollar drifted higher on Monday in generally thin trading, with many investors on the sidelines ahead of Friday’s U.S. nonfarm payrolls report, which could determine the path of the Federal Reserve’s monetary policy.
The U.S. Labor Department is expected to report a gain of 690,000 jobs in June, compared with 559,000 in May, and an unemployment rate of 5.7% versus 5.8% in the previous month, according to a Reuters poll of economists.
The dollar has been on an upside trajectory since the outcome of the U.S. central bank’s policy meeting earlier this month, with a majority of Fed policymakers pencilling in at least two quarter-percentage-point interest rate increases by the end of 2023.
In afternoon trading, the dollar index was up 0.1% at 91.897.
The euro was down 0.1% at $1.1923, while euro-dollar implied volatility gauges with a one-year maturity were close to their lowest since March 2020.
Against the yen, the dollar was down 0.2% at 110.57.
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