Treasury Yield Curve Flattens to Start the Week

Treasurys are mixed to start the week, with a decline in the 10-year yield while the 2-year yield is ticking higher.

In a holiday-shortened trading week, investors will be waiting on catch-up economic data from the federal government and looking ahead to a Fed meeting on December 9-10 that could yet bring another rate cut or a hold.

A rally this year has pushed the 10-year yield down closer to 4%, but sustained trading below that level “would require a meaningful shift in the macro landscape and a downshift in the outlook,” Ian Lyngen of BMO writes to clients.