The 10-year Treasury yield increases at the beginning of the week.

The Treasury note yield increased on Monday to mark the beginning of the final week of trading in 2023.

On Thursday, the yield on the fell below 4%, reaching its lowest point since July.

The yield remained unchanged at 4.457%, falling short of the closely monitored 4.5% threshold.

Prices and yields move in opposite directions, with one basis point equal to 0.01%.

The U.S. Federal Reserve surprised traders with a more aggressive series of rate cuts next year, as policymakers revealed that they planned to cut at least three key interest rates.

On Monday, Deutsche Bank strategists characterized the Fed's move as a significant departure from the "higher-for-longer" narrative, while acknowledging that some Fed officials disagreed with the idea of rate cuts being a current topic of discussion.

The big question is when rate cuts may occur, and on Friday, Fed officials expressed mild pushback against market excitement, according to an early note.

On Friday, New York Fed President John Williams stated on CNBC's Steve Liesman that the topic of rate cuts is not being discussed at the moment.

Atlanta Fed President Bostic stated that he does not believe an imminent rate cut is necessary, and that they would not need to make such a move until Q3. As a result, markets experienced a slight loss of momentum on Friday, according to Deutsche strategists.