U.S. Treasury yields fell on Wednesday as investors prepared to scrutinize economic data for further clues about the prospects for a rate cut.
The 10-year Treasury yield briefly rose above 4.3% in the last session, hitting its highest since July, before falling more than 4 basis points to 4.232%. The two-year maturity government bond yield fell 2bp to 4.094%.
Yields and prices move in opposite directions. 1 basis point is 0.01%.
Investors will be monitoring new economic data on Wednesday ahead of this weekend’s all-important October jobs report.
The ADP employment report for October is scheduled to be released at 8:15 a.m. ET, and the Commerce Department is scheduled to report its first preliminary figures on U.S. third-quarter gross domestic product (GDP) data shortly thereafter.
Advance economic data for September and pending home sales for September will also be released on Wednesday morning.
Traders are betting that the Federal Reserve will cut interest rates by a quarter of a point next week, according to CME Group’s FedWatch Tool.
The Federal Reserve cut interest rates by 50 basis points in September, joining several other major central banks in easing monetary policy.
Policymakers are currently in a so-called blackout period ahead of the next meeting on November 6-7. This means that we will not be providing any comments after the data is released or on general policy and economic expectations.
