Treasury yields fall as investors consider economic outlook
U.S. Treasury yields slipped on Tuesday, as investors digested optimistic commentary from a Federal Reserve official and awaited the release of data that could provide hints about the economic outlook.
The 2-year Treasury yield was down 10 basis points at 4.753%. The 10-year Treasury yield was nearly 4 basis points lower at 4.35%.
Yields fall when prices rise, and one basis point equals 0.01%.
Treasurys
| TICKER | COMPANY | YIELD | CHANGE |
|---|---|---|---|
| US1M | U.S. 1 Month Treasury | 5.355% | +0.002 |
| US3M | U.S. 3 Month Treasury | 5.396% | +0.001 |
| US6M | U.S. 6 Month Treasury | 5.387% | +0.005 |
| US1Y | U.S. 1 Year Treasury | 5.194% | +0.029 |
| US2Y | U.S. 2 Year Treasury | 4.933% | +0.055 |
| US10Y | U.S. 10 Year Treasury | 4.475% | +0.041 |
| US30Y | U.S. 30 Year Treasury | 4.583% | +0.033 |
Comments from Fed Governor Christopher Waller raised hopes earlier Tuesday that the central bank is done raising interest rates to tamp down inflation. Waller said that monetary policy is "currently well positioned" to slow the economy and bring inflation back down.
Waller's commentary comes ahead of the Federal Open Market Committee's policy meeting on Dec. 12-13, during which the committee is widely expected to keep its key lending rate steady. Questions still linger around how long rates will stay elevated and when in 2024 they might be cut, especially as the economy slows and recessionary concerns swirl.
Data released Tuesday showed consumer confidence improved in November, although most still expect a future recession. The Conference Board's index rose to 102 for the month, higher than a downwardly revised 99.1 from October and ahead of the Dow Jones estimate for 101.
Investors also looked ahead to economic reports scheduled this week that could sway upcoming monetary policy decisions from the Federal Reserve.
Fresh inflation insights are expected on Thursday by way of the personal consumption expenditure price index — a key data point for the Fed.