The last trading week of 2024 begins

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

The performance on 10-year Treasury fell about 7 basis points to 4.547%, trading just below multi-month highs recorded last week. He 2-year treasury The yield was last trading at 4.254% after falling about 7 basis points.

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

Investors focused on the end of the year and quarter, and considered the outlook for the US economy and the path forward for the Federal Reserve’s monetary policy in 2025.

The Federal Reserve indicated that fewer interest rate cuts were on the horizon when it met earlier this month. Authorities will make their first decision on 2025 interest rates at the end of January. Long-term interest rates have risen in recent months, despite cuts from the Federal Reserve, as traders reduce expectations that the central bank will take more action next year.

“We believe the Fed’s rate cut cycle is nearing its end as we only expect one additional rate cut next year. Fed and market expectations were for a further rate cut cycle. long and deep, but our projections consistently saw fewer rate cuts as economies advanced “Strength and persistent inflation persisted,” Brian Rehling, head of global fixed income strategy at Wells Fargo Investment Institute, said in a note. to customers on Monday.

Economic data released on Monday was mixed. Pending home sales data for November hit the highest level in a year, but the Chicago Purchasing Managers’ Index came in at 36.9, below the 42.2 projected by economists, according to Dow Jones.

Data published last week. showed that weekly initial jobless claims for the week ending December 21 fell slightly and were below expectations, while continuing claims for the week ending December 14 jumped to the highest level since November 2021 .

Bond markets will close early on Tuesday and remain closed on Wednesday while celebrating New Year’s Eve and Day.