U.S. Treasury yields declined today, with the 10-year yield falling three basis points to 4.776% and the 2-year yield dropping one basis point to 4.386%. These movements come as investors prepare for the release of the producer price index, scheduled for 8:30 a.m. ET tomorrow, which is expected to show a headline increase of 0.4% and a core increase of 0.3%, excluding food and energy.
Last week, bond yields surged following a stronger-than-anticipated jobs report, which heightened expectations for a slower pace of interest rate cuts by the Federal Reserve. The central bank's next meeting is set for January 28-29, where market projections indicate a greater than 97% likelihood of maintaining current rates.