The 10-year Treasury note yield rose Monday to start the last full trading week of 2023.
The yield on the 10-year Treasury was about 2 basis points higher at 3.943%. On Thursday, the yield fell below the 4% level, hitting its lowest since July.
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The 2-year Treasury yield was little changed at 4.457%, below the closely watched 4.5% level.
Yields and prices move in opposite directions. One basis point equals 0.01%.
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Traders continued to digest an unexpectedly dovish pivot from the U.S. Federal Reserve. The central bank last week held its key interest rate steady and revealed that policymakers were penciling in at least three rate cuts next year — marking a more aggressive series of cuts than what was previously hinted.
In fact, Deutsche Bank strategists on Monday described the Fed's move as a "big shift" from the higher-for-longer narrative, though they noted some Fed officials went against the notion rate cuts are a current topic of discussion.
"But the big question is now when these rate cuts might happen, and on Friday we had some mild pushback from Fed officials against the market excitement," they said in an early note.
Money Report
On Friday, New York Fed President John Williams told CNBC's Steve Liesman: "We aren't really talking about rate cuts right now."
"Meanwhile, Atlanta Fed President Bostic said 'I'm not really feeling that this is an imminent thing', and that they wouldn't need to cut rates until Q3. So markets actually lost a bit of momentum on Friday," the Deutsche strategists added.