benchmark 10 year treasury Yields were relatively unchanged Wednesday as investors continued to monitor developments that could affect the Federal Reserve’s future interest rate decisions and speculation grew about the central bank’s next chair.
The 10-year yield fell less than 1 basis point to 3.994%, while the 30-year yield fell more than 1 basis point to 4.641%. The two-year bond yield rose more than 1 basis point to 3.477%.
One basis point equals 0.01%, and yields and prices move in opposite directions.
In a sign that the labor market may be stabilizing, the number of new jobless claims for the week ending Nov. 22 was lower than expected at 216,000, the Labor Department said Wednesday. This is the lowest level since mid-April. A Dow Jones survey of economists had predicted 225,000 jobs for the period.
Wall Streeters are also waiting for news on who the next Fed chair will be, after Treasury Secretary Scott Bessent told CNBC on Tuesday that it is “very likely” that President Donald Trump will announce the next central bank leader by Christmas.
Bessent, who is searching for a successor to current Federal Reserve Chairman Jerome Powell, said the president has one more interview left.
“Whether it’s before the Christmas holidays or in the new year, that’s his prerogative. But I think things are going very well,” Bessent added.
According to Bloomberg, Trump’s allies and advisers believe White House National Economic Council Director Kevin Hassett is the frontrunner. Mr. Hassett is seen to be sympathetic to Mr. Trump’s desire for low interest rates.
Traders are currently pricing in a more than 80% chance that the Fed will cut interest rates by a quarter of a percentage point in December, according to the CME FedWatch tool.
