The yield on the 10-year Treasury rose by two basis points to 4.647% on Monday, while the 2-year Treasury yield fell by 2.6 basis points to 4.97%. Investors eagerly awaited upcoming economic data that could shed light on the state of the economy and the future of interest rates.
Yields and prices move in opposite directions, with one basis point equating to 0.01%. Various key data points are expected later in the week, including the personal consumption expenditures price index for March, which is the Fed’s preferred inflation measure. This data could influence policymakers’ decisions leading up to the next Federal Reserve policy meeting on April 30-May 1.
Other important data anticipated this week includes durable goods orders and a GDP reading for the first quarter of 2024. Recent economic indicators showing steady inflation and economic strength have led investors to delay their expectations for rate cuts by the Fed.
Federal Reserve officials, including Chairman Jerome Powell, have suggested that there is no immediate need for rate cuts and that any decisions will depend on how the economy evolves. The Fed has now entered a “blackout period” leading up to their upcoming meeting, which means they will not release any new information until after their meeting is over.
