U.S. Treasury yields were slightly lower on Monday as investors looked ahead to this week’s Federal Reserve meeting and interest rate decision.
At 3:00 a.m. ET, the yield on the 10-year Treasury was less than one basis point lower at 3.6401%. The 2-year Treasury yield was last down by over one basis point to 3.5571%.
Yields and prices move in opposite directions. One basis point equals 0.01%.
The Federal Reserve meeting and interest rate decision are top of mind for investors this week, with the central bank’s meeting kicking off Tuesday and concluding Wednesday.
Markets are anticipating a rate cut from the Fed, the first since it began hiking rates in March 2022, but uncertainty about how big the reduction will be has been widespread. Expectations for a bigger 50-basis-point cut have been growing in recent days.
CME Group’s FedWatch tool last showed traders pricing in a 61% chance of a 50-basis-point cut and a 39% probability of a…
