Treasury yields hits lowest since July

The 10-year US Treasury yield hit its lowest level since July as traders assessed the Federal Reserve’s future rate cuts. The yield on the benchmark 10-year Treasury note was last down around 2 basis points to 3.901%, its lowest level since July 27 when the 10-year yield was as low as 3.839%.

The 2-year yield slipped about 4 basis points to 4.399%, while the 30-year Treasury bond yield was little changed at 4.03%. The December consumer confidence survey came in stronger than expected, rising to 110.7 from the downwardly revised 101 a month earlier.

November existing home sales were greater than expected, with home sales rising 0.8% last month to a seasonally adjusted annualized rate of 3.82 million units.

Treasury yields have come off their highs after the Fed indicated three likely interest rate cuts in 2024, prompting a steep fall in the 10-year yield as investors increased bets on a quicker loosening of monetary policy.