The 10-year Treasury yield decreases to begin the last week of 2023.

On Tuesday, the yield on the 10-year Treasury note decreased, marking the beginning of the final trading week of 2023.

The benchmark yield decreased by approximately 2 basis points to 3.893%, while the yield on the inched up more than a basis point to 4.352%.

Prices move inversely to yields. U.S. markets were closed Monday due to the Christmas holiday.

U.S. inflation data last week provided traders with encouraging information, leading to Tuesday's market movements.

In November, the core personal consumption expenditures price index, which is the Federal Reserve's preferred inflation metric, increased by 0.1% month over month and 3.2% year over year. Economists predicted a 0.1% monthly gain and a 3.3% yearly increase, as per Dow Jones.

According to Michael Shaoul, chairman and CEO of Marketfield Asset Management, the report does not indicate that the US personal sector is on the brink of collapse. Instead, the focus is on whether the current decline in goods costs can continue in a high-demand environment.

The FOMC can likely fulfill its plan to ease policy in 2024 if the price trend continues, but a reversal in the trend would make it more challenging to justify a significant policy shift.