The 10-year U.S. Treasury yield fell on Tuesday as bond traders kicked off a shortened trading week.
The benchmark yield slipped nearly 4 basis points, trading at 4.036%. The 2-year Treasury yield was last at 3.954% after rising 1 basis point.
One basis point equals 0.01%. Yields and prices move in opposite directions.
The U.S. bond market was closed Monday due to the Columbus Day holiday.
Investors were assessing the outlook for the economy as they considered the latest comments from Federal Reserve officials and looked to economic data due throughout the week.
On Monday, Minneapolis Fed President Neel Kashkari suggested that future interest rate cuts would be “modest” and reiterated that policy decisions would depend on economic data. Elsewhere, Fed Governor Christopher Waller urged caution about any future rate reductions.
On Tuesday, San Francisco Fed President Mary Daly said there’s room for the central bank to lower rates further.
“We’re a long way from where it’s likely to settle,” she said. “So the decisions that are really in front of us are ones about how quickly to adjust towards that level. But it’s quite possible that we will have a neutral rate of interest that’s a little higher than the interest rate that we came in with.”
