Treasury yields advanced on Monday, led by the 3-month T-bill rate, as traders priced in a better-than-not chance of the fed-funds rate going a bit above 5% next month and staying there until at least June.

What happened

Market drivers

Treasury yields advanced on Monday as investors awaited the next major U.S. inflation update in two days. Inflation traders have been expecting the annual inflation rate, as reflected in the March consumer-price index, to come in a bit above 5%, versus 6% for February.Earlier…