U.S. Treasury yields decreased on Monday, with the 10-year yield falling to 4.537%, still elevated from 3.8% at the start of October. The 2-year yield also dropped to 4.25%. Despite these declines, yields have risen sharply in the fourth quarter due to persistent inflation and robust employment data, prompting investors to lower expectations for Federal Reserve rate cuts. Wells Fargo’s Brian Rehling noted that the Fed’s rate-cutting cycle may be nearing its end, with only one potential cut anticipated next year. Economic data was mixed, with home sales rising but the Chicago purchasing managers’ index falling short of projections.
