The final trading week of 2024 begins

US Treasury yields fell on Monday in one of the last trading days of the year.

comes on 10-year Treasury traded just below the 4.537% level, down nearly 8 basis points multi-month highs were recorded last week. The 2 years Treasury last traded at 4.25% after yields fell more than 7 basis points.

Yields and prices move in opposite directions, and one basis point is equal to 0.01%.

Despite Monday’s declines, the 10-year Treasury yield still rose sharply in the fourth quarter, up from 3.8% in early October. The gains came as inflation and employment data held steady in recent months and investors backed off expectations that the Federal Reserve would cut interest rates.

The Fed noted this less interest discount was on the horizon when we met earlier this month. Policymakers will make their first interest rate decision of 2025 at the end of January. Despite Fed tapering, long-term interest rates have risen in recent months as traders scale back expectations for further central bank action next year.

“We believe the Fed’s rate-cutting cycle is coming to an end, as we expect only one additional rate cut next year. Fed and market expectations were for a longer and deeper cycle of rate cuts, but our projections are for less rate cuts to continue economically saw continued strength and stubborn inflation,” Brian Rehling, head of global fixed income strategy at Wells Fargo Investment Institute, said in a note to clients on Monday.

Economic data released on Monday was mixed. Expected home sales data rose to a one-year high in November, but the Chicago purchasing managers’ index came in at 36.9, below the 42.2 economists had predicted, according to Dow Jones.

Information released last week It showed weekly initial jobless claims for the week ended Dec. 21 fell slightly and came in below expectations, while ongoing claims for the week ended Dec. 14 rose to the highest level since November 2021.

Bond markets will close early on Tuesday and remain closed on Wednesday for the New Year’s Eve and New Year’s holiday.