As investors anticipate the Fed meeting and inflation data, treasury yields increase.

On Monday, U.S. Treasury yields rose as investors anticipated the Federal Reserve's monetary policy meeting and impending inflation data.

The yield on the increased by more than three basis points to 4.4650% at 4:53 a.m. ET. The yield had previously been over two basis points higher at 4.8909%.

Prices and yields move in opposite directions, with one basis point equal to 0.01%.

The Federal Reserve will announce its latest interest rate decision and policy guidance, along with new economic data, including inflation figures, this week.

The Fed is expected to leave interest rates unchanged at its meeting on Tuesday and Wednesday, as well as at its July meeting. Traders are pricing in a 49% chance of rates being cut in September, according to CME Group's FedWatch tool.

This week, investors will closely monitor the central bank's guidance and post-meeting press conference for hints about the outlook for rates and the economy.

This week, the latest inflation insights will be released through the publication of the consumer and producer price index reports for May.

Many investors are hoping for economic data that signals the economy is cooling, as policymakers have stated they need more data evidence to ensure inflation is easing sustainably toward the 2% target before making interest rate cuts.

Despite the unexpected rise in nonfarm payrolls, the May jobs report showed that the increase was higher than expected, with 272,000 jobs added during the month. This was higher than the previously revised 165,000 jobs in April and above the initial estimate of 190,000 jobs.