Treasury yields fall as traders assess prospects of future Fed rate cuts

The 10-year U.S. Treasury yield retreated on Tuesday as traders continued to assess the prospect of future rate cuts from the Federal Reserve.

The yield on the benchmark 10-year note was down about 2 basis points at 3.933%, having fallen below 4% on Thursday to hit its lowest point since July.

The yield on the 30-year Treasury bond also dropped about 3 basis points to 4.041%, while the yield on the 2-year note fell more than 1 basis point at 4.444%.

Yields move inversely to prices. One basis point equals 0.01%.

Treasury yields have come off their highs after the Fed last week indicated three likely interest rate cuts in 2024. The unexpectedly dovish pivot prompted a steep fall in the 10-year yield as investors increased bets on a quicker loosening of monetary policy.