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U.S. Treasury Yields Start the Week Higher as Traders Assess Rate Hikes, Recession Risk

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U.S. Treasury yields were higher to start the week as market players assessed the prospect of central banks implementing more interest rate hikes to curb soaring inflation.

The yield on the benchmark 10-year Treasury note was trading higher by 8 basis points at 3.205%. Meanwhile, the yield on the 30-year Treasury bond also rose around 6 basis points to 3.205%. Yields move inversely to prices.

Pending home sales posted a surprise 0.7% increase in May from April, the National Association of Realtors reported Monday, likely due to a brief pullback in mortgage rates. That beat expectations of a 4% drop.

On Thursday, Federal Reserve Chairman Jerome Powell reaffirmed the U.S. central bank's "unconditional" commitment to reining in 40-year high inflation levels.

Speaking at the U.S. House of Representatives Financial Services Committee, Powell acknowledged that sharply higher interest rates could push up unemployment but said that restoring price stability is "something that we need to do."

— CNBC's Sarah Min and Diana Olick contributed to this report.

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