by Gertrude Chavez-Dreyfus
Nuevanew yorkDec. 6 – US Treasury yields fell amid thin trading on Tuesday with no major economic data on the calendar as the market waited for the Federal Reserve to slow its pace of raising interest rates.
* Since hitting a 15-year high on October 21, the benchmark 10-year bond yield has fallen nearly 78 basis points (bps). It fell 2 basis points to 3.579% on Tuesday.
* The yield on two-year debt, which moves in step with interest rate expectations, has fallen nearly 50 basis points from a 15-year high hit on November 4. It fell 1.1 basis points to 4.385% on Tuesday.
* The yield curve between two-year and 10-year bonds widens their investments. The difference between the two returns reached -83.4 basis points before narrowing slightly to -82.30 basis points. An inversion of this yield curve usually precedes a recession.
* Investors anxiously await next week’s busy schedule of events, which begins with the release of consumer price index data (Indian Penal Code) in November and the monetary policy meeting of the Federal Open Market Committee (FOMC,
, BMO He said the November payrolls confirm that at least two more rate hikes will follow. He maintained his estimate that the final adjustment of monetary policy would be an increase of 25 basis points on March 22 next year.
* Markets expect the Fed to hike rates by 50 basis points this month after several 75 basis point hikes.
* As of midmorning, the yield on the 30-year Treasury note fell 4.2 basis points to 3.574%.