Treasury markets displayed a lack of clear direction during the early hours of Tuesday's session before trending downward as the day progressed. Initially, bond prices hovered near the unchanged mark, but they ultimately slipped into negative territory. As a result, the yield on the benchmark ten-year note, which inversely correlates with its price, increased by 2.8 basis points to reach 4.573 percent.
This retreat occurred after a notable rise in prices on Monday, driven by ongoing concerns regarding interest rate prospects as we approach the new year. Earlier in the month, the Federal Reserve disclosed that officials now anticipate only two interest rate cuts in the coming year, a reduction from the initially projected four.
Additionally, uncertainties regarding the potential impact of President-elect Donald Trump's proposed policies on the U.S. budget deficit may have further influenced the treasury market. Nonetheless, selling pressure remained relatively muted, as many traders chose to stay on the sidelines in anticipation of the New Year's Day holiday on Wednesday.
Looking ahead, Thursday's trading might be affected by responses to the release of the weekly jobless claims report.
The material has been provided by InstaForex Company -
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