U.S. Treasury Yields Fluctuate Amid Fed Rate Decision Anticipation

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.