According to Odaily, U.S. Treasury yields experienced fluctuations ahead of the Federal Reserve's rate decision announcement. Initially, yields rose, but they later retreated following the release of economic data indicating a decline in new home construction both month-over-month and year-over-year. This downturn in housing starts contributed to the easing of Treasury yields.
Market expectations are currently leaning towards a 25 basis point rate cut by the Federal Reserve, with indications that rate hikes may be paused in January. This anticipation has added a hawkish tone to the market sentiment. As a result, the settlement price for the 10-year U.S. Treasury yield is poised to reach its highest level in over a month. The interplay between economic indicators and monetary policy expectations continues to shape the dynamics of the U.S. Treasury market.
