NEW YORK, May 6 (Reuters) - U.S. Treasury yields ticked higher on Monday as investors continued to digest Friday's news of subdued April job creation that reinforced the Federal Reserve's suggestion that the economy was not overheated enough to derail an easing this year.
This week's information stream looks much lighter than last week's load, which included Treasury refunding news, the Fed's policy announcement keeping interest rates on hold and Friday's report of a smallish 175,000-job nonfarm payroll rise last month that sent the yield on the two-year note skidding to a three-week low and the 10-year yield to a two-week low.
With the Consumer Price Index release more than a week away, the market is left to see how a slew of Fed speakers follow up last week's decision to hold rates steady while all but ruling out standing pat all year and especially a 2024 rate hike, even as the economy looks healthy and inflation sticky.
"We're back to Fed-speak," said Jack McIntyre, portfolio manager, global bonds, at Brandywine Global.
On Monday, Richmond Fed President Thomas Barkin speaks in Colombia, South Carolina, at 12:50 p.m. EDT (1650 GMT), while New York Fed President John Williams will be participating in a conversation before the Milken Institute Global Conference starting at 1 p.m. EDT (1700 GMT).
On Friday, Fed Governor Michelle Bowman said she expects inflation to decline further with a steady policy rate, but she still sees upside inflation risks that may affect her outlook, and she remains willing to raise the fed funds rate at a future meeting if data showed inflation has stalled or reversed.
The yield on benchmark U.S. 10-year notes rose 0.4 basis point from its late Friday level to 4.504%. It bottomed at 4.453% after the jobs report, the lowest yield since April 10.
The 2-year note yield, which typically moves in step with interest rate expectations, was 0.6 basis point firmer at 4.8117%. On Friday it fell to 4.716%, the lowest since April 5.
After last week's fall in yields, the question is how much demand will show up when the Treasury auctions $58 billion in 3-year notes on Tuesday, $42 billion in 10-years on Wednesday and $25 billion of 30-year bonds on Thursday?
"The macro influences aren't going to be quite as pronounced this week, but we're back into supply." McIntyre said. "Now the market is going to have to deal with this never-ending onslaught of Treasury supply."
The April read on producer prices is due on May 14, followed by widely watched CPI for April on May 15. Both will be indicators of whether inflation has begun to come down again toward the Fed's 2% target rate.
In the fed funds futures market, traders are currently pricing in a 66% chance the Fed will pivot in September with a 25 basis point cut at that meeting. The second cut is priced for December.
The 30-year bond yield rose 0.5 basis point to 4.6655%.
The yield curve gap between yields on two- and 10-year Treasury notes, seen as an indicator of economic expectations, was at a negative 31.0 basis points, versus -32.35 late on Friday. (Compiled by the Global Finance & Markets Breaking News team; editing by Jonathan Oatis)
