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U.S. 10-Year Treasury Yield Rises as Investors Assess Path for Interest Rates

The 10-year U.S. Treasury yield advanced on Monday as investors digested Friday’s comments from Federal Reserve chief Jerome Powell and fretted over the outlook for interest rates and central bank policy.

The yield on the 10-year Treasury was over 3 basis points higher at 4.259%. The 2-year Treasury yield was last at 4.633% after rising by more than 6 basis points. Meanwhile, the yield on the 30-year Treasury was little changed at 4.416%.

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


US1MU.S. 1 Month Treasury5.4150.02
US3MU.S. 3 Month Treasury5.399-0.001
US6MU.S. 6 Month Treasury5.413-0.008
US1YU.S. 1 Year Treasury5.1060.002
US2YU.S. 2 Year Treasury4.633-0.025
US10YU.S. 10 Year Treasury4.243-0.043
US30YU.S. 30 Year Treasury4.396-0.041

The moves mark a reversal after Treasury yields fell on Friday following remarks from Fed Chairman Jerome Powell. The central bank official said that it would be “premature” to confidently say monetary policy is restrictive enough and to “speculate” about rate cuts. He did not exclude the possibility of rates going higher still “if it becomes appropriate.”

Powell also said that the Fed would maintain its restrictive monetary policy stance until officials are convinced that inflation is on its way back to the central bank’s 2% target.      

Many investors have been hoping that the Fed’s interest rate-hiking cycle, which began in March 2022, has come to an end and that the Fed may soon begin cutting rates. They’ve hoping for hints about when rates may be lowered from the central bank’s next meeting on Dec. 12-13.

Investors also looked ahead to key economic data due throughout the week that could provide hints about whether higher interest rates are having their desired effect of cooling the economy. That includes a series of labor market figures, including JOLTs job openings on Tuesday and ADP’s private sector payrolls report on Wednesday before November’s jobs report is published Friday.

Source : CNBC