Treasury yields rose Monday, as investors considered the state of the economy after a cut to the U.S. outlook from Moody’s.
The yield on the 10-year Treasury added 1 basis point to 4.638%. The 2-year Treasury yield was last trading at 5.033%, shedding nearly 3 basis points. Yields and prices move in opposite directions, and one basis point equals 0.01%.
TREASURYSTICKER COMPANY YIELD CHANGE US1MU.S. 1 Month Treasury5.3980.007US3MU.S. 3 Month Treasury5.401-0.007US6MU.S. 6 Month Treasury5.4210.008US1YU.S. 1 Year Treasury5.2610.021US2YU.S. 2 Year Treasury4.9050.063US10YU.S. 10 Year Treasury4.443-0.002US30YU.S. 30 Year Treasury4.6-0.022
On Friday, Moody’s Investors Services lowered its U.S. credit rating outlook from stable to negative, citing fiscal deficits and political division as key factors. This comes amid a resurging threat of a U.S. government shutdown. The government is funded through to Nov. 17, but lawmakers are divided over a financing bill past that deadline. Meanwhile, several key data points that could inform the Federal Reserve’s upcoming monetary policy plans are expected this week. This includes the October consumer price index and the October producer price index, which will be published on Tuesday and Wednesday, respectively. This comes after Fed Chairman Jerome Powell last week said that inflation is still too high and reiterated the central bank’s commitment to bring it back down to the 2% target range. Progress towards this has been made, Powell noted, but the Fed is “not confident” its current monetary policy stance is restrictive enough to achieve the goal, and there is still “a long way to go” in the process. The monthly federal budget statement for October is expected on Monday, along with the New York Fed’s consumer inflation expectations survey.
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