Ten-Year Yield Falls To Lowest Closing Level In Over A Year

(RTTNews) - After moving higher over the course of the previous session, treasuries saw further upside during trading on Tuesday.

Bond prices advanced early in the session and remained in positive territory throughout the day. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, fell by 2.3 basis points to 3.963 percent.

With the continued decrease on the day, the ten-year yield dropped to its lowest closing level in over a year.

Treasuries have recently benefitted from increasing optimism about the outlook for interest rates amid the ongoing U.S. government shutdown.

The Federal Reserve has been widely expected to lower interest rates by a quarter point at each of its next two meetings since announcing its first rate cut of 2025 in September.

However, recent weeks have seen an increase in investor confidence that the Fed will continue cutting rates at its meetings early next year.

While the shutdown has led to the indefinite delay of most U.S. economic data, traders may feel the impact of the stoppage could lead the Fed to lower rates more aggressively than previously planned.

Despite the shutdown, the Labor Department is scheduled to release its closely watched report on consumer price inflation on Friday. The data could be impact the outlook for rates.