Anticipation Ahead of Fed Meeting Leads to Decline in Treasury Yields

U.S. Treasury yields witnessed a decline on Monday, influenced by investor anticipation of the Federal Reserve’s interest rate decision and upcoming key economic data. The 10-year Treasury yield saw a drop of 6 basis points to 4.098%, while the 2-year Treasury yield decreased by 3.9 basis points to 4.33%. This movement comes after the release of December’s personal consumption expenditures price index, showing a year-on-year rise of 2.9%, slightly below expectations. The focus is now on the Fed’s upcoming interest rate decision this Wednesday, following the start of their meeting on Tuesday.