Treasury yields nudge higher as investors assess growth outlook
U.S. Treasury Yields Edge Higher as Investors Assess Growth Outlook #
U.S. Treasury yields saw a slight increase early Monday as investors evaluated the economic growth outlook following the Federal Reserve’s significant rate cut last week.
The 10-year Treasury yield rose just over a basis point to 3.745%, while the 2-year Treasury note yield remained nearly flat at 3.574%. It’s important to note that yields and prices move in opposite directions, and one basis point equals 0.01%.
The 10-year Treasury yield concluded the previous week almost 8 basis points higher after the Fed reduced rates by half a percentage point on Wednesday. While markets had anticipated the possibility of this substantial move, the announcement still caught many economists off guard.
Investors are now questioning whether this move signals positive news for the U.S. economy or indicates a more severe weakening than previously anticipated.
The Fed Chair emphasized that there were no signs of an elevated risk of economic downturn and that growth was continuing at a solid rate. He also mentioned that the central bank had performed a recalibration of its policy stance to help maintain growth and support the labor market.
Attention now turns to upcoming data releases this week, including:
- Flash purchasing managers’ index figures on Monday
- House prices and consumer confidence reading on Tuesday
- Final quarterly gross domestic product print on Thursday
- Additional inflation data on Friday
Several Fed board members are scheduled to give speeches throughout the week.