U.S. Treasury yields fell on Wednesday, buoyed by better-than-expected gross domestic product data and investors' hopes that the Federal Reserve is finished with its rate-hiking campaign.
The yield on the 10-year Treasury about 7 basis points lower at 4.267%. That marks the first time since September that the benchmark rate trades below 4.3%. The 2-year Treasury yield was last down by about 9 basis points at 4.648%, marking the lowest level since July 18Â when it yielded as low as 4.660%.
Yields and prices move in opposite directions and one basis point is equivalent to 0.01%.
Treasurys
Equities rallied on Wednesday after U.S. GDP for the third quarter grew at a stronger-than-expected pace, accelerating at a 5.2% annualized pace, the Commerce Department announced earlier in the day.
Investors also assessed the outlook for interest rates as they digested hopeful comments from Federal Reserve Governor Christopher Waller, who said on Tuesday that monetary policy was "well positioned" to achieve the Fed's goals of slowing the economy and lowering inflation. Many took this as a sign that the central bank could be done hiking rates.
One last Fed meeting is scheduled for this year on Dec. 12-13. Markets are expecting the central bank to keep rates unchanged then and are hoping for hints about when policymakers believe rates could come back down.
Data published Tuesday suggests that consumers still expect economic contraction, however their overall confidence in the economic outlook rose in November.