US Treasury yields fell slightly on Monday as the final trading days of the year began.
Shortly after 11 a.m. ET, the yield on… Treasury for 10 years It was down about 6 basis points at 4.557%, and was trading just below Multi-month highs recorded last week. the Treasury for two years The yield was last trading at 4.26% after falling by more than 6 basis points.
Yields and prices move in opposite directions, and one basis point equals 0.01%.
Investors focused on the end of the year and quarter, and considered the outlook for the US economy and the future path of monetary policy from the Federal Reserve in 2025.
The Federal Reserve noted this Fewer interest rate cuts She was looming when she met earlier this month. Policymakers are scheduled to make their decision on the first interest rate for 2025 in late January. Long-term interest rates have risen in recent months, despite cuts by the Federal Reserve, as traders retreated from their expectations for more central bank action next year.
“We believe the Fed's rate-cutting cycle is coming to an end, as we expect only one additional rate cut next year. The Fed and market expectations were for a longer and deeper rate-cutting cycle, but our forecast saw continued smaller rate cuts in Interest rates as economy slows.
Economic data released on Monday was mixed. Pending home sales data for November rose to the highest level in a year, but the Chicago PMI came in at 36.9, below the 42.2 that economists had expected, according to the Dow Jones Index.
Data released last week It showed that weekly initial jobless claims for the week ending December 21 fell slightly and came in below expectations, while continuing claims for the week ending December 14 jumped to the highest level since November 2021.
Bond markets will close early Tuesday and will remain closed Wednesday for New Year's Eve and New Year's Day.
