A specialist trader works at his post on the floor at the New York Stock Exchange (NYSE) in New York City.
The 10-year Treasury yield retreated to a new low going back to late October on Friday amid a shortened trading day for U.S. markets following the Thanksgiving holiday.
The yield on the 10-year Treasury slipped just over 2 basis points to 4.219%. At one point, the yield fell as far down as 4.203%, which marked its lowest point since Oct. 30. Meanwhile, the 2-year Treasury shed around 1 basis point, sitting at 4.202%.
One basis point equals 0.01%, and yields and prices move in opposite directions.
Friday is a quiet day on the U.S. data front, following a flurry of news that came early in the week. The bond market closes at 2 p.m. ET Friday after being dark on Thursday for Thanksgiving.
Earlier in the week, the Federal Reserve's preferred inflation measure came in slightly higher on the previous month at 2.3%, in line with the Dow Jones consensus forecast. Initial claims for unemployment benefits fell more than expected in the latest indication of labor market tightness.
The Fed's November meeting minutes, meanwhile, suggested that if price increases and labor data continued to come in roughly as expected, it would be warranted to "gradually" lower interest rates.
However, President-elect Donald Trump's threat on Monday of quickly passing tariff hikes targeting China, Mexico and Canada are expected by many economists to fuel domestic inflation — and to potentially see the Fed ease policy more cautiously than it otherwise would have.
Money Report
Markets are currently pricing in 66.3% odds on a 25 basis-point rate cut in December, according to CME Group's FedWatch Tool, versus a 33.7% chance of a hold.
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