Traders work on the floor of the New York Stock Exchange (NYSE) in the Financial District in New York City on March 4, 2025.
U.S. Treasury yields dropped on Monday with investors seeking safety as fears of an economic slowdown grew.
The benchmark 10-year Treasury yield fell 9 basis points to 4.226%. The 2-year Treasury yield dropped nearly 10 basis points to 3.906%. One basis point is equal to 0.01%, and yields and prices move in opposite directions.
Those moves come as equities sold off again to start the week. The S&P 500 shed more than 2% on Monday, while the Nasdaq Composite dropped 4%. The Dow Jones Industrial Average fell nearly 900 points.
Investors also braced for key economic data releases this week.
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The big report of the week is the consumer price index, due for release on Wednesday at 8:30 a.m. ET, as well as the producer price index on Thursday. Investors will use these indicators as an important gauge for the health of the U.S. economy.
"Inflation data will dominate the economic calendar this week. The total and core Consumer Price Indexes (CPI) likely rose at a more moderate pace in February after sharp increases in the prior month, resulting in annual increases holding roughly steady," Bill Adams, chief economist at Comerica Bank, said in a statement.
Investor concerns picked up over the weekend as Trump commented that his tariffs may affect U.S. growth and did not rule out the possibility of a recession by saying the economy was going through "a period of transition." U.S. Treasury Secretary Scott Bessent made similar remarks on Friday, saying the economy may be slowing.
Money Report
"Could we be seeing that this economy that we inherited starting to roll a bit? Sure. And look, there's going to be a natural adjustment as we move away from public spending to private spending," Bessent said on CNBC's "Squawk Box."
"The market and the economy have just become hooked. We've become addicted to this government spending, and there's going to be a detox period," he added.
Correction: The consumer price index report is due out Wednesday at 8:30 a.m. ET. A previous version misstated the time.
