U.S. Treasury yields were little changed on Thursday as investors await more economic data and anticipate President Donald Trump’s speech at the World Economic Forum in Davos, Switzerland.
At 4:00 a.m. ET, the 10-year Treasury yield rose by one basis point to 4.6090%, while the 2-year Treasury yield dipped by less than one basis point to 4.3185%.
One basis point is equal to 0.01% and yields and prices have an inverted relationship.
Treasurys
Investors are expecting the initial jobless claims data on Thursday for the week ending Jan. 18. They will also be looking to the release of the S&P Global Composite PMI Flash on Friday, which will offer insights into the growth of the manufacturing and services sectors.
Existing home sales data for the month of December is also due out on Friday.
Investors will turn their attention to Trump’s keynote address at the WEF on Thursday. He’s set to speak via video link at 5 p.m. Davos time.
They will listen closely for more details about Trump’s plans to introduce tariffs on goods imported to the U.S.
Following his inauguration, Trump commented that he’s considering a 25% tariff on Canada and Mexico from Feb. 1. He also said he’s planning to implement a 10% tariff on China.
Investors are now looking ahead to the next Federal Open Market Committee meeting on Jan. 28-29, where decisions on interest rate cuts will be made. The Fed penciled in two rate cuts for 2025 at its December meeting, signaling a slow and cautious approach.
Fed Governor Christopher Waller recently told CNBC that the central bank may lower interest rates multiple times this year if inflation eases as he is expecting.