US Treasury yields tick higher as investors consider smaller Fed rate cut

US Treasury yields tick higher as investors consider smaller Fed rate cut

U.S. Markets Overview: Treasurys chart

At around 02:15 a.m. ET, the yield on the benchmark , which moves inversely to price, was higher at around 2.0621%, while the yield on the  was also higher at around 2.5806%.

Market focus is largely attuned to the U.S. central bank, after a report from the Wall Street Journal the Fed was likely to cut rates by a quarter-point at the July 30-31 Federal Open Market Committee meeting.

Late last week, by New York Fed President John Williams had boosted expectations the central bank could cut rates by 50 basis points. However, the New York Fed sought to clarify Williams' comments by saying his speech was not about policy action at the upcoming central bank meeting.

The Wall Street Journal report said global growth concerns and ongoing trade uncertainties could prompt the Fed to make further cuts over the coming months.

Meanwhile, the U.S. Treasury is set to auction $36 billion in 13-week bills and $36 billion in 26-week bills.

Elsewhere, oil prices rose more than 1% on Monday. It comes amid concerns that Iran's seizure of a British tanker last week could lead to supply disruptions in the Middle East.

International benchmark  crude traded at around $63.42, up more than 1.5%, while U.S.  (WTI) stood at $56.23, over 1% higher.