The yield on the benchmark 10-year U.S. Treasury yield has fallen below 4.30% for the first time since September of this year.
The yield on the 10-year note is currently at 4.29%, its lowest level in more than two months. The 2-year Treasury yield was last down by more than three basis points to 4.699%.
Yields and prices move in opposite directions and one basis point is equal to 0.01%.
The drop in yields come as investors assess the outlook for interest rates and look towards upcoming economic data.
Increasingly, investors and traders are betting that the U.S. Federal Reserve is done raising interest rates and will begin cutting them in 2024 as inflation declines and the economy slows.
One last Fed rate decision is scheduled for this year on Dec. 13. Markets are expecting the central bank to keep rates unchanged at that year-end meeting.
Concerns about the state of the economy and whether higher rates will lead to a recession have increased in recent weeks. Data published recently showed that American consumers still expect an economic contraction in 2024.
New insights into the state of the U.S. economy will come today (Nov. 29) when a revised reading of gross domestic product (GDP) for this year’s third quarter is released.