One basis point equals 0.01%. Yields and prices move in opposite directions.

Investors are awaiting the latest inflation reading due on Wednesday as well as the consumer and producer prices data for October set to be published later this week. The consumer data will provide insights about the health of the U.S. economy.

The October CPI is expected to rise 0.2% on a monthly basis and to have risen 2.5% on a yearly basis, according to economists polled by FactSet. Core inflation is expected to remain steady at 0.3% and 3.3% on a monthly and yearly basis, respectively. Meanwhile, the October PPI is expected to have risen by 0.3% last month and 2.3% on a yearly basis.

A number of Federal Reserve officials are due to speak this week including Richmond Federal Reserve President Thomas Barkin on Tuesday. Fed Chair Jerome Powell will also give a speech on Thursday, which investors will monitor closely for hints about future monetary policy.

They will also look out for monthly retail sales and industrial production data amongst other reports, which will be published on Friday.

Last week, Fed officials lowered interest rates by 25 basis points to a target range of 4.50%-4.75%.

Traders are pricing in a 63% chance of another quarter-point cut by Fed officials in its next December meeting, according to the latest insights from the CME Group's FedWatch tool.