U.S. Treasury yields decreased on Thursday, coinciding with a shortened trading session in observance of the late former President Jimmy Carter. The 10-year Treasury yield fell over three basis points to 4.659%, while the 2-year yield also dropped more than three basis points to 4.258%. Previously, yields had exceeded 4.7%, marking the highest levels since April. As part of a national day of mourning for Carter, who passed away at age 100 in December, many U.S. financial markets closed early at 2 p.m. ET. On Wednesday, participants in the Federal Reserve’s December meeting noted that the pace of interest rate cuts may slow, fueled by concerns over inflation and potential impacts from President-elect Donald Trump’s policies. The minutes revealed heightened concerns over inflation risks due to stronger-than-expected economic indicators. Additionally, investors are eagerly awaiting the nonfarm payrolls report scheduled for release on Friday, a critical piece of data prior to the Fed’s end-of-January meeting. Estimates suggest that the U.S. added 155,000 jobs in December with the unemployment rate remaining steady at 4.2%, indicating ongoing labor market stability.
