U.S. Treasury yields fell at the start of the week as investors looked ahead to the Federal Reserve’s interest rate decisions and continued to monitor geopolitical and trade uncertainties.
As of 5:55 a.m. ET, the 10-year Treasury yield was down nearly 3 points to 4.211%, and the 2-year Treasury yield was down more than 1 basis point to 3.59%. The yield on the 30-year U.S. Treasury bond also fell by 2 basis points to 4.809%.
One basis point equals 0.01%, and the yield is inversely proportional to the price.
The big event this week is the Fed’s interest rate decision scheduled for Wednesday afternoon. This is the central bank’s first policy decision of the year.
Investors mainly expect policymakers to keep interest rates on hold, according to the CME FedWatch tool. The central bank has cut rates three times in 2025, and traders are now predicting two quarter-point rate cuts in 2026.
Geopolitical and trade uncertainty remains in the spotlight after US President Donald Trump threatened to impose 100% tariffs on Canada if it strikes a trade deal with China.
Canadian Prime Minister Mark Carney said Sunday that his country will not pursue a free trade agreement with China and will respect its obligations under the Canada-U.S.-Mexico trade agreement.
