The 10-year U.S. Treasury yield advanced on Tuesday as investors analyzed latest Federal Reserve meeting minutes and key economic data due this week. The yield on the 10-year Treasury rose more than 3 basis points to 4.296%, regaining some ground after tumbling in Monday’s session. The 2-year Treasury yield was near flat at 4.254%. Yields and prices moved inversely to one another, and one basis point equals 0.01%. The Fed minutes said future interest rate cuts were likely, but to expect them to come “gradually.” The minutes were tied to the Federal Reserve’s last policy meeting earlier this month, when it lowered its benchmark lending rate a quarter point to a range of 4.50% to 4.75%. The central bank started cutting the fed funds rate in September, and the next meeting of the rate-setting Open Market Committee comes on Dec. 17-18.
Source: CNBC – Bonds
