As investors evaluate the growth prospects, treasury yields increase.
On Monday, U.S. Treasury yields rose as investors evaluated the growth prospects after the Federal Reserve's massive rate reduction the previous week.
The 10-year Treasury yield increased by 6.06 basis points to 3.794%, while the 2-year Treasury note yield rose by 5.05 basis points to 3.624%.
Prices and yields move in opposite directions. A basis point is equivalent to 0.01%.
Last week, the 10-year Treasury yield increased by almost 8 basis points after the Fed reduced rates by half a percentage point on Wednesday. Despite markets predicting a significant move, the announcement still caught many economists off guard.
Now, market participants are questioning whether the move was beneficial for the U.S. economy or a sign that it is deteriorating more severely than previously believed.
Last week, Jerome Powell, the Fed Chair, stated that he did not observe any increased risk of an economic slowdown and that the growth rate was still strong.
The central bank adjusted its policy stance to maintain growth and support the labor market, as stated by him.
Markets
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