On Monday, the yields on US Treasury bonds experienced a slight increase as investors evaluated the likelihood that the Federal Reserve’s interest rate hiking cycle has come to an end. At 3:31 a.m. ET, the yield on the 10-year Treasury rose by over three basis points, reaching 4.4764%. This was just two days after it had briefly hit a low not seen since September at 4.379%. Similarly, the yield on the 2-year Treasury also increased by less than one basis point, standing at 4.9151%.
It is important to note that yields and prices move in opposite directions and that one basis point is equivalent to 0.01%. Investors are closely monitoring factors such as the economy and Federal Reserve monetary policy in order to make informed investment decisions. With growing hopes that the central bank is finished with interest rate hikes following lower-than-expected readings for both the producer and consumer price index, there is widespread expectation among markets that interest rates will remain unchanged at the Fed’s last meeting in December. However, investors are also pondering when the Fed might begin to cut rates and this topic has been discussed in detail by Fed officials.
Data from the Fed’s last meeting will be released on Tuesday and could provide insight into their considerations and expectations. There is no key data expected on Monday, but it is worth noting that bond markets will be closed on Thursday and will close early on Friday for Thanksgiving. Overall, investors are carefully considering all available information in order to make informed decisions about their investments in US Treasury bonds.