The 10-year U.S. Treasury yield rose on Wednesday as investors fretted over economic growth and monetary policy direction for 2023.
The 10-year Treasury yield was up by more than 1 basis point at 3.875%. The yield on the 2-year Treasury note dipped by 1 basis point and was last trading at around 4.353%.
Yields and prices move in opposite directions and one basis point equals 0.01%.
Treasurys
Economic data releases on Wednesday included pending home sales, which slipped 4.0% in November on a monthly basis, according to the National Association of Realtors. The drop came as high mortgage rates gave prospective buyers cold feet. Economists polled by Dow Jones had expected a decline of 1.8%.
Investors are bracing themselves for potential pressures related to a recession, persistent inflation and what that could mean for Federal Reserve policy, especially regarding interest rates, in 2023.
They will be scanning the last economic data releases of the year for hints about that, with pending home sales figures due on Wednesday.
Many investors are hoping for the data to signal an easing of inflationary pressures, as that would suggest that the Fed could further slow, or completely pause, interest rate hikes.
The central bank increased rates by 50 basis points earlier this month, a slight decrease from the 75 basis point hikes it implemented at each of its previous four meetings. Fears about the pace of rate hikes leading to a recession in the U.S. have grown among investors.