The 10-year U.S. Treasury yield retreated on Tuesday, reversing course from the previous day’s trade and continuing a general downward trend over the past week.
The yield on the benchmark 10-year note was down 4.5 basis points at 3.9089%, having fallen below 4% on Thursday to hit its lowest point since July. Yields move inversely to prices. One basis point equals 0.01%.
The yield on the 30-year Treasury bond also dropped more than 5 basis points to 4.0146%, while the yield on the 2-year note was down 2 basis points at 4.4373%.
The Federal Reserve’s indication last week of three likely interest rate cuts in 2024 has been the main driver of market activity over the past week. The unexpectedly dovish pivot prompted a steep fall in the 10-year yield as investors increased bets on a quicker loosening of monetary policy.
Data points on Tuesday will include November’s building permits and housing starts figures, due at 8:30 a.m. ET.
An auction will be held Tuesday for $70 billion of 42-day Treasury bills.