2023-12-28 10:32:22
U.S. Treasury yields rose on Thursday (28th) as investors weighed the outlook for the economy and financial markets as the new year approaches.
4:59 a.m. ET,10-Year Treasury Bond Yieldrose 2.7 basis points to 3.816%. The 2-year Treasury yield rose 1.8 basis points to 4.26%.
Yields and prices move in opposite directions, with 1 basis point equal to 0.01 percentage points.
As 2024 approaches, the Federal Reserve’s monetary policy decision remains the top concern for investors.
Following its last meeting earlier this month, the Fed noted that it expected three interest rate cuts next year and inflation to slow further. The latest economic data has investors optimistic regarding the possibility of the Fed’s 2024 forecast coming true.
But questions remain regarding when the rate cut will come and whether it will be enough to stave off a U.S. recession, as rates will remain high even following the cut.
According to CME Group’s FedWatch tool, the market expects the Federal Reserve to cut interest rates for the first time at its March meeting, which will be the Fed’s second meeting next year.
On the data front, weekly initial jobless claims and pending home sales data will be released on Thursday. At the same time, global stock markets continued their year-end gains, closing at record highs.
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