New Delhi, Oct. 19 -- U.S. Treasury bonds held steady early Monday with 10-year notes trading near the lowest levels in just over a month as investors parsed the drivers behind the strongest rally in more than a year and its ties to the selloff in the tech sector.

The bond market plowed through faster-than-expected inflation data last week, including the highest CPI reading since May, as well as overall deficit figures that showed the biggest budget shortfall since 2021, to lop more than 17 basis points from benchmark 10-year notes and take them to a late September low of 5.08% by the close of trading Friday.

That slump was paired with a similar decline in 30-year yields, the paper's biggest weekly decline since April 2025, and a smalle...