By MarketWatch BOSTON (MarketWatch) -- Treasury prices were little changed on Monday, as markets awaited the meeting of the Federal Reserve's policy-setting committee and any new statements on its outlook or measures to aid the economy. Yields on 10-year notes (UST10Y 2.83, +0.01, +0.18%) fell 1 basis point to 2.81% at last check. Yields and prices move in opposite directions. Yields on 2-year notes (UST2YR 0.52, +0.02, +3.17%) were unchanged at 0.51% after touching a record low last week. Treasury yields plunged Friday in the wake of a disappointing July jobs report that fueled expectations the Fed may take additional steps to boost what looks to be a flagging economy. "The upward pressure on rates that is typically associated growing deficits has yet to materialize," said Bill Mast, director of fixed-income indexes at Morningstar Inc., in a note. "This is evidence to some that the majority does not believe the economy is in a material recovery, or that inflation is of little risk." The bond market could see action Tuesday as the Federal Open Market Committee meets. "We expect to see no change to the Fed funds rate this year," said economists at PNC. "There have been reports that the FOMC will consider rolling over maturing mortgage-backed securities into Treasury bond purchases which would constitute limited, and largely symbolic, quantitative easing." Looking ahead, bond traders will receive data this week on retail sales, consumer prices and consumer sentiment.

Source