As investors anticipate a possible Fed rate reduction, Treasury yields remain relatively stable.

On Monday, U.S. Treasury yields remained relatively stable, with investors focusing on the upcoming Federal Reserve meeting this week.

The 10-year Treasury yield decreased by 2.6 basis points to 4.375% after reaching 4.4% on Friday. The yield also decreased by 1.5 basis points to 4.226%.

Prices and yields move in opposite directions.

Investors are eagerly anticipating the final U.S. interest rate decision of the year, which will be the focus of the Federal Open Market Committee's meeting on Tuesday and Wednesday.

According to the CME FedWatch tool, there was a 97% chance of a 25-basis-point interest rate cut as of Monday.

The Fed's updated policy statement and Jerome Powell's press conference on Wednesday will be the focus of markets, providing insights into future interest rate decisions.

The FOMC meeting is approaching, and the Fed is in a blackout period, preventing committee officials from making public comments.

Intelligent Wealth Solutions' portfolio manager, Logan Moulton, stated that inflation appears to be more stubborn than anticipated by Fed officials, and there will be risks associated with raising inflation when the Trump administration assumes power.

Moulton suggested that they should pause before heading into 2025.

The S&P Global Composite PMI flash, which gauges U.S. business activity across manufacturing and services, will be published on Monday. A score above 50 signifies expansion, while a reading below that mark suggests contraction.

Economic data such as retail sales for November, weekly initial jobless claims, and the GDP growth rate for the third quarter will be published throughout the week.