U.S. Treasury yields fell slightly on Monday as investors awaited the start of the Federal Reserve’s December meeting and consumer inflation figures due to be released this week.
At around 4:17 a.m. ET, the yield on the 10-year Treasury note was down by just over two basis points to 3.5433%. The 2-year Treasury yield was almost flat and was last trading at 4.3294% after dipping by less than a basis point.
Yields and prices move in opposite directions. One basis point is equivalent to 0.01%.
The Fed is expected to start its last meeting of the year on Tuesday. Investors are widely expecting officials to increase interest rates by 50 basis points, marginally slowing down the pace of rate hikes after four consecutive 75 basis point increases.
They are also hoping that Fed Chairman Jerome Powell will provide further guidance about future monetary policy in his remarks at the end of the meeting.
The latest consumer inflation figures are also due to be released on Tuesday. Investors will be scanning the data for insights into whether the Fed’s rate hikes have been effective in pushing back against rising prices.