The 10-year U.S. Treasury yield retreated slightly on Tuesday, reversing course from the previous day’s trade and persevering with a normal downward trend over the previous week.
The yield on the benchmark 10-year note was down just below 3 foundation factors at 3.9294%, having fallen under 4% on Thursday to hit its lowest level since July. Yields transfer inversely to costs. One foundation level equals 0.01%.
The yield on the 30-year Treasury bond additionally dropped round 3 foundation factors to 4.0362%, whereas the yield on the 2-year note was little modified at 4.4520%.
The Federal Reserve’s indication final week of three likely interest rate cuts in 2024 has been the primary driver of market exercise over the previous week. The unexpectedly dovish pivot prompted a steep fall within the 10-year yield as traders elevated bets on a faster loosening of financial coverage.
Data factors on Tuesday will embody November’s constructing permits and housing begins figures, due at 8:30 a.m. ET.
An public sale shall be held Tuesday for $70 billion of 42-day Treasury payments.