Treasury Yields Decline as Markets Assess Fed's Rate Hikes and Soft Inflation Data

Treasury yields continue to decline as markets assess the impact of the Federal Reserve's rate hikes and soft inflation data. Investors anticipate a 'dovish pivot' by the Fed, with expectations of rate cuts for 2024. The yield on the 10-year Treasury slipped by 3 basis points to 4.14%, while the 2-year Treasury yield fell by 2 basis points to 4.82%. The Fed Chairman, Jerome Powell, had previously suggested that further rate hikes were still possible and rate cuts had not been discussed yet.