As the Final Week of 2023 Begins, Treasury Yields Are Little Changed

On Tuesday, Treasury yields exhibited minimal changes as investors settled in for what is anticipated to be a subdued final week of trading for 2023.

‍

In terms of price action, the yield on the 2-year Treasury note (BX:TMUBMUSD02Y) experienced a modest increase of 4.2 basis points, reaching 4.378%, as reported by FactSet data. Simultaneously, the 10-year Treasury note (BX:TMUBMUSD10Y) inched up by 1.5 basis points to 3.912%, while the 30-year Treasury bond yield (BX:TMUBMUSD30Y) remained steady at 4.053%.

‍

The trading atmosphere in U.S. markets was relatively quiet on Tuesday morning, with investors returning from the Christmas Day holiday. Looking ahead, market analysts anticipate a tranquil week with only a couple of noteworthy economic data releases scheduled.

‍

Tom Essaye, the founder of Sevens Report Research and a former Merrill Lynch trader, highlighted that investors will closely monitor Thursday's weekly jobless claims report, along with a forthcoming report on U.S. home prices. However, beyond these events, he foresees a week characterized by calm market activity.

‍

The 2-year Treasury note's yield experienced a slight uptick, reaching 4.378%. Similarly, the 10-year Treasury note saw a modest increase of 1.5 basis points, bringing its yield to 3.912%. In contrast, the 30-year Treasury bond yield remained unchanged at 4.053%. These movements in Treasury yields were observed against the backdrop of a quiet Tuesday morning in U.S. markets, as participants returned following the Christmas Day holiday.

‍

Looking ahead, market analysts are anticipating a relatively calm week, with only a few notable economic data releases on the agenda. Investors are particularly focused on Thursday's release of the weekly jobless claims report and an upcoming report on U.S. home prices. Tom Essaye, founder of Sevens Report Research, emphasized the significance of these reports in shaping market sentiment for the week. However, beyond these data points, expectations are for subdued market activity, reflecting the typical slowdown in trading during the year-end period.

‍

The 2-year Treasury note's yield rose by 4.2 basis points, reaching 4.378%, according to data from FactSet. Meanwhile, the 10-year Treasury note experienced a marginal increase of 1.5 basis points, bringing its yield to 3.912%. In contrast, the 30-year Treasury bond yield remained flat at 4.053%. These adjustments in Treasury yields occurred within the context of a calm Tuesday morning in U.S. markets, marked by the return of investors following the Christmas Day holiday.

‍

Looking ahead, market analysts are predicting a tranquil week, with only a couple of noteworthy economic data releases on the horizon. Thursday's weekly jobless claims report and an upcoming report on U.S. home prices are expected to be the focal points for investors. Tom Essaye, founder of Sevens Report Research, highlighted the importance of these reports in guiding market sentiment for the week. However, beyond these specific events, the prevailing expectation is for a subdued market environment, aligning with the typical slowdown in trading activity that characterizes the year-end period.