U.S. Treasury yields were lower on the first trading day of the new year, as investors considered what could lie ahead for markets in the coming months.
Shortly after 9:15 a.m. ET on Thursday, the yield on the 10-year Treasury was down by roughly 3 basis points at 4.547%. The 2-year Treasury yield was last at 4.225% after falling by almost 3 basis points.
Yields and prices have an inverted relationship. One basis point equals 0.01%.
Treasurys
| TICKER | COMPANY | YIELD | CHANGE |
|---|---|---|---|
| US1M | U.S. 1 Month Treasury | 4.289 | 0.01 |
| US3M | U.S. 3 Month Treasury | 4.327 | 0.002 |
| US6M | U.S. 6 Month Treasury | 4.279 | 0.005 |
| US1Y | U.S. 1 Year Treasury | 4.148 | -0.008 |
| US2Y | U.S. 2 Year Treasury | 4.223 | -0.029 |
| US10Y | U.S. 10 Year Treasury | 4.533 | -0.044 |
| US30Y | U.S. 30 Year Treasury | 4.754 | -0.029 |
Bond markets re-opened Thursday after closing early Tuesday and remaining shut Wednesday in observance of New Year’s Day. Treasurys had a choppy 2024, with the yield on the 10-year Treasury starting the year below 3.9%, before rising above 4.7% in the spring, retreating back to below 3.7% in the fall, and ending the year above 4.5%.
The holiday-shortened week is light on the economic data front, but investors nonetheless are watching out for clues about what could lie ahead for the economy, monetary policy and markets in the coming months.
On Thursday, initial jobless claims for the week ending Dec. 28 came in at 211,000, below the 225,000 projected by economists, according to Dow Jones. The reading was down from revised number of 220,000 in the prior week. Continuing jobless claims, which run a week behind, also declined.
Data on Friday will bring insights into the manufacturing sector. Attention will then turn to a series of jobs data and the minutes from the Federal Reserve’s latest meeting which are slated for next week.
In December the Fed indicated that fewer interest rate cuts were now on the horizon. Policymakers will meet again at the end of January, and are expected to hold rates steady according to CME Group’s FedWatch tool.
