The yield on the 10-year U.S. Treasury note fell slightly on Monday as investors returned from the Christmas break.
As of 3:33 a.m. ET, the 10-year Treasury yield fell 2 basis points to 4.112%, while the 2-year Treasury yield was last little changed at 3.477%.
Yields and prices move in opposite directions. 1 basis point equals 0.01%.
The move comes as traders digest the latest economic data and assess the path of the Federal Reserve’s monetary interest rate.
The Labor Department announced Wednesday that there were 214,000 new jobless claims filed for the week ending Dec. 20. This was lower than expected and was down 10,000 cases from the previous week.
Separately, the Commerce Department reported Tuesday that the U.S. economy grew 4.3% in the first quarter, the country’s fastest expansion in two years.
No further economic data is expected to be released on Monday.
Jacob Pedersen, head of equity research at Sidbank, said he expects the Fed to cut rates at least once next year.
“I don’t think it’s going to be as much as investors are expecting right now,” Pedersen told CNBC’s “Squawk Box Europe” on Monday.
“Of course, there’s going to be a lot of tension around Fed independence going into 2026. Financial markets need an independent Fed, and I think that’s going to be the case depending on how things play out.”
—CNBC’s Sean Conlon and Fred Imbert contributed to this report.
