The 10-year Treasury yield retreated to a new low going back to late October on Friday, as U.S. markets head for a shortened trading day following the Thanksgiving holiday.
The yield on the 10-year Treasury slipped just over 2 basis points to 4.219%. At one point, the yield fell as far down as 4.203%, which marked its lowest point since Oct. 30. Meanwhile, the 2-year Treasury shed around 1 basis point, sitting at 4.202%.
One basis point equals 0.01%, and yields and prices move in opposite directions.
Friday is a quiet day on the U.S. data front, following a flurry of news that came early in the week.
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Earlier in the week, the Federal Reserve's preferred inflation measure came in slightly higher on the previous month at 2.3%, in line with the Dow Jones consensus forecast. Initial claims for unemployment benefits fell more than expected in the latest indication of labor market tightness.
The Fed's November meeting minutes, meanwhile, suggested that if price increases and labor data continued to come in roughly as expected, it would be warranted to "gradually" lower interest rates.
However, President-elect Donald Trump's threat on Monday of quickly passing tariff hikes targeting China, Mexico and Canada are expected by many economists to fuel domestic inflation — and to potentially see the Fed ease policy more cautiously than it otherwise would have.
Money Report
Markets are currently pricing in 66.3% odds on a 25 basis-point rate cut in December, according to CME Group's FedWatch Tool, versus a 33.7% chance of a hold.
