Remaining buying and selling week of 2024 kicks off
U.S. Treasury yields slipped on Monday in one of many remaining buying and selling days of the yr acquired underway.
The yield on the 10-year Treasury was down by about 7 foundation factors at 4.547%, buying and selling just under multimonth highs recorded final week. The 2-year Treasury yield was final buying and selling at 4.254% after dipping by about 7 foundation factors.
Yields and costs transfer in reverse instructions, and one foundation level equals 0.01%.
Traders targeted on the tip of the yr and quarter, and thought of the outlook for the U.S. financial system and the trail forward for financial coverage from the Federal Reserve in 2025.
The Fed indicated that fewer rate of interest cuts had been on the horizon when it met earlier this month. Policymakers will make their first fee choice of 2025 in late January. Lengthy-term rates of interest have risen in current months, regardless of the Fed’s cuts, as merchants dial again expectations for additional central financial institution motion subsequent yr.
“We imagine the Fed rate-cutting cycle is close to its finish, as we anticipate just one further fee reduce subsequent yr. Fed and market expectations had been for an extended and deeper rate-cut cycle, however our projections persistently noticed fewer fee cuts as financial power and cussed inflation persevered,” Brian Rehling, head of world mounted earnings technique at Wells Fargo Funding Institute, stated in a be aware to purchasers Monday.
Financial knowledge launched Monday was combined. November’s pending house gross sales knowledge rose to the very best stage in a yr, however the Chicago buying managers’ index got here in at 36.9, under the 42.2 projected by economists, in accordance with Dow Jones.
Information launched final week confirmed that weekly preliminary jobless claims for the week ending Dec. 21 fell barely and got here in under expectations, whereas persevering with claims for the week ending Dec. 14 jumped to the very best stage since November 2021.
Bond markets will shut early Tuesday and stay closed Wednesday as New Yr’s Eve and New Yr’s Day are noticed.
