U.S. Treasury yields were slightly higher on Monday as investors weighed the economic outlook and assessed the prospects that the Federal Reserve’s interest rate hike cycle is over.
3:31 am ET, yields on 10 Year Treasury It was up three basis points at 4.4764%. It touched its lowest level since September at 4.379% on Friday.
The 2 Year Treasury The yield was at 4.9151% after rising less than a basis point.
Yields and prices move in opposite directions and one basis point is equal to 0.01%.
Investors weighed the outlook for the economy and the Federal Reserve’s monetary policy, as hopes that the central bank will raise rates have increased in recent weeks.
After the producer and consumer price index came in lower than expected last week, inflation is easing and the central bank’s interest rate hikes are having the desired effect of cooling the economy.
The Fed is set to meet once again in December this year and markets are widely expecting interest rates to remain unchanged.
Investors are weighing when the central bank will start cutting rates – central bank officials did not elaborate. The topic was not discussed at the central bank’s latest meeting, Fed Chairman Jerome Powell said at the time, but many investors believe that could change based on the latest economic data.
Minutes from the central bank’s last meeting earlier this month are due to be released on Tuesday and may shed some light on the central bank’s considerations and expectations. No key data is expected on Monday.
Bond markets are closed Thursday and will close early Friday for Thanksgiving.