10-Year U.S Treasury Yield Settles Below 4.6%
The 10-year yield cleared at 4.596% on Friday, the largest one-week yield decline since Friday, Dec. 6, 2024. Earlier on the day, the yield on the 10-year US Treasury note was steady above the 4.57% level after reaching the eight-month high of 4.65% in December.
The yield held over 50 basis points increase from 2024 as strong economic data backed the Federal Open Market Committee’s (FOMC’s) signal that rates should remain high this year.
Yields were down slightly before the Institute of Supply Management purchasing managers index surprised to the upside by gaining 0.9 points to 49.3, its highest reading since March, nudging ever closer to the 50 expansion/contraction reading.
A selloff in government debt as the market repriced expectations for Federal Reserve policy in 2025 hoisted the 10-year yield above 4.64% on Dec. 26, its highest level since early May.
Market data revealed that the two-year U.S. Treasury yield is not far from its November-December levels above 4.36%, which were last seen in July’s rate decline as markets were pricing in the start of Fed easing.
The strong macroeconomic backdrop and pro-inflationary policies campaigned by President-elect Trump drove markets to be split between one or two 25bps rate cuts by the Fed this year.
At the same time, U.S. Dollar Index DXY, a measure of the currency versus a basket of six major rivals, pulled back from a two-year high reached on Thursday.
Traders had recently pushed up the dollar in anticipation of fewer rate cuts from the Federal Reserve this year. #10-Year U.S Treasury Yield Settles at 4.596% #10-Year U.S Treasury Yield Settles Below 4.6% Goldman Sachs, IFC Partner African Banks to Empower Women Entrepreneurs
