With Federal Reserve officials about to take office, rhetoric about balancing inflation and employment has become a new trigger for bond market volatility.

U.S. Treasury yields fell in midday European trading. While investors remained cautious, they showed little concern over the U.S. military's capture of Venezuelan President Maduro over the weekend, with market focus shifting to upcoming economic data. Exness analyst Krisada Yoonaisil noted in a report, "The market is likely to remain cautious ahead of a crucial week for monetary policy expectations, with new data releases shaping the outlook for the dollar and interest rates." The strategist stated that the market will be watching speeches by Federal Reserve officials this week, as any guidance on inflation and labor market balance could trigger volatility in both the currency and bond markets. Tradeweb data showed that the two-year U.S. Treasury yield fell 1.6 basis points to 3.460%, and the ten-year U.S. Treasury yield fell 2 basis points to 4.168%. (Jinshi)