Investors anticipate PMI data for U.S. economic insights

U.S. Treasury yields increased on Monday as investors prepared for important economic data. They are particularly focused on the purchasing managers' index (PMI). This index will provide insights into the health of the U.S. economy. The yield on the benchmark 10-year Treasury note rose by more than three basis points to 4.282%. The 2-year Treasury yield also climbed by three basis points to 3.979%. Rising yields often indicate investor confidence but can lead to lower bond prices. The market got some positive news when reports suggested that President Donald Trump might reduce the scope of planned tariffs set to start on April 2. This has raised hopes that the U.S. economy could continue to grow without significant trade disruptions. Trump mentioned his willingness to be flexible regarding trade tariffs. He noted that many partners were asking for exceptions. "Once you do that for one, you have to do that for all," he said. His comments suggested a softer approach, which boosted investor sentiment. This week is filled with key economic releases. The PMI data, coming out Monday, will show how manufacturing, services, and construction sectors are performing. Readings above 50 indicate growth, while below 50 suggests a contraction. Later in the week, investors will also look for new home sales data on Tuesday and jobless claims on Thursday. The most closely watched report will be the personal consumption expenditures index on Friday, which measures inflation and is favored by the Federal Reserve.