U.S. Treasury yields fell on Thursday ahead of a shortened trading session as the bonds market will close early in honor of the late former U.S. President Jimmy Carter.
At 4:33 a.m. ET, the 10-year Treasury yield was more than two basis points lower to 4.67%, while the 2-year Treasury yield was more than one basis point lower at 4.27%. On Wednesday, Treasury yields topped 4.7%, its highest level since April.
One basis point is equal to 0.01% and yields and prices move in opposite directions.
Financial markets are closed on Thursday in accordance with a national day of mourning for Carter, who died in late December at age 100. A state funeral for the country’s 39th president will be taking place. Bond market trading will end early at 2 p.m. ET.
Investors digested minutes released from the Federal Reserve’s December Meeting on Wednesday. Fed officials indicated in the meeting that the pace of interest rate cuts would slow this year, casting concern over inflation and the impact that President-elect Donald Trump’s policies could have.
“Almost all participants judged that upside risks to the inflation outlook had increased,” the minutes said. “As reasons for this judgment, participants cited recent stronger-than-expected readings on inflation and the likely effects of potential changes in trade and immigration policy.”
A series of jobs data has been released throughout this week, and investors are keenly anticipating the nonfarm payrolls report on Friday — one of the last key pieces of data to be published ahead of the Fed’s meeting at the end of January.
The report is expected to show that the U.S. added 155,000 jobs in December and that the unemployment rate held steady at 4.2%, according to estimates from Dow Jones.
