This week's steep decline in the stock market was further exacerbated by the 10-year Treasury yield slipping.

The yield on the 10-year Treasury note decreased on Friday, continuing its decline this week, as investors anticipate potential Federal Reserve rate cuts in the upcoming year.

The yield on the fell below the 4% level for the first time since August on Thursday, reaching its lowest level since July. It had previously been up by 5.2 basis points at 4.45%, near the closely watched 4.5% level. On Thursday, it hit levels not seen since May.

At the start of the week , the 10-year traded near 4.22%.

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

The Fed's announcement that it would cut interest rates three times next year caused Treasury yields to reach their lowest point in several months.

The Fed has kept interest rates unchanged for three consecutive times, increasing investor confidence that the rate-hiking cycle has ended.

Although the Fed observed that inflation had decreased in the past year, prices remained somewhat high. The consumer price index and producer price index for November indicated that the pressure from rising prices was easing earlier in the week.

On Friday, New York Fed President John Williams conveyed a more cautious outlook on the near-term future of monetary policy during an interview with CNBC.

Williams informed CNBC's Steve Liesman that the topic of rate cuts was not the focus of their current conversation.