Inflation data attracts focus, causing treasury yields to increase.

On Monday, U.S. Treasury yields rose as investors anticipated the release of the latest inflation data and other crucial economic indicators for the week.

At 3:09 a.m. ET, the yield on the 30-year Treasury bond increased by more than two basis points to 3.9647%. Meanwhile, the yield on the 10-year Treasury bond was last over two basis points higher to 4.0817%.

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

This week, investors awaited new inflation data amid ongoing uncertainty about the U.S. economy.

The producer price index for July, which monitors wholesale prices, will be released on Tuesday, and the consumer price index for the same month will be published on Wednesday.

Investors will closely monitor inflation data after recent concerns about a possible U.S. recession and the Federal Reserve's decision to cut interest rates.

The Fed did not alter rates during its last meeting, but suggested that a September rate reduction could be considered based on economic data signals, particularly those concerning inflation and employment.

The weaker-than-expected jobs report caused recession fears, but the latest weekly initial jobless claims figures came in below forecasts last week, slightly soothing these fears.

The Fed is expected to cut interest rates by 100% in September, according to market pricing, but traders are still unsure about the size of the cut, as indicated by CME Group's FedWatch tool.

Retail sales figures for July are anticipated to be released this week, potentially offering further insights into the economy's condition and the performance of U.S. consumers.