Treasury yields hold regular as investors consider the monetary policy perspective

January 24, 2023: On Monday, U.S. Treasury yields were little changed as investors mulled over the Federal Reserve’s following interest rate and considered the outlook for the broader financial.

As of 5:27 a.m. ET, the 10-year Treasury benchmark yield was up just one basis point at 3.497%. The 2-year Treasury yield was flat at 4.185%.

Yields and prices are transferring in opposite directions. One basis point is equivalent to 0.01%.

Investors weighed in on the following monetary policy decisions as uncertainty over if the Fed would hike interest prices by 25 or 50 basis points at its next meeting on January 31 and February 1 continued.

In the latest weeks, Fed speakers have hinted that they would consider slowing the rate by more than 25 basis points. Some, including Fed Governor Christopher Waller, have stated outright that they would favour a more nominal growth.

The wholesale and consumer inflation figures for December declined every month.

Many investors hope the central bank will slow or pause rate hikes. The speed of rate increases announced by the Fed in its battle regarding high inflation has sparked concerns about a possible recession.

No vital economic data is expected on Monday. As the week continues, investors will follow S&P Global’s buying managers’ index report on Tuesday, GDP figures, and the personal consumption expenditure costs index on Friday.

The latter is one of the Fed’s favoured inflation gauges and could inform the central bank’s next policy moves.