Treasury yields fall as investors await key data, Fed meeting
U.S. Treasury yields declined Monday as investors looked ahead to a week of key economic data and the Federal Reserve's first interest rate decision of the year.
The yield on the 10-year Treasury was down by 9.4 basis points to 4.066%. The 2-year Treasury yield pulled back 5.5 basis points to 4.31%.
Yields and prices move in opposite directions. One basis point equals 0.01%.
Treasurys
| TICKER | COMPANY | YIELD | CHANGE |
|---|---|---|---|
| US1M | U.S. 1 Month Treasury | 5.368% | UNCH |
| US3M | U.S. 3 Month Treasury | 5.391% | -0.003 |
| US6M | U.S. 6 Month Treasury | 5.379% | +0.013 |
| US1Y | U.S. 1 Year Treasury | 5.183% | +0.042 |
| US2Y | U.S. 2 Year Treasury | 4.872% | +0.065 |
| US10Y | U.S. 10 Year Treasury | 4.50% | +0.051 |
| US30Y | U.S. 30 Year Treasury | 4.642% | +0.041 |
Investors awaited the Fed's next interest rate decision, which is expected Wednesday, and looked to key economic data due this week.
That comes after December's personal consumption expenditures price index, a key inflation gauge for the Fed, was published Friday. It rose 0.2% from the previous month and 2.9% on an annual basis. Economists previously surveyed by Dow Jones had been expecting increases of 0.2% and 3%, respectively.
The Fed's January meeting will begin Tuesday before the central bank's interest rate decision is published Wednesday.
Investors are widely expecting the Fed to keep rates unchanged and are hoping for fresh guidance on the outlook for interest rates, especially when they may be cut. According to CME Group's FedWatch tool, markets are currently pricing in an almost 50% chance of rates being cut at the Fed's March meeting.
Key data from the labor market that could provide hints about the state of the economy and the impact of interest rates is also due this week. The latest JOLTs job openings figures are slated for Tuesday ahead of ADP's private payrolls report on Wednesday and the January jobs report — which includes nonfarm payrolls and unemployment figures — on Friday.