U.S. Treasury bond yields mostly declined in a holiday-shortened trading session. Markets will remain closed Wednesday for the Christmas holiday.
The yield on 5-year Treasury bonds fell by 0.7 basis points, reaching 4.438%, while the yield on 30-year bonds was 4.791% (+0.6 basis points). Meanwhile, the yield on 2-year Treasury bonds, reflecting expectations of short-term interest rates, decreased by 0.7 basis points to 4.343%, while the yield on 10-year bonds fell to 4.595% (-0.4 basis points).
As for the US data, only the Richmond Fed manufacturing index for December is scheduled for today. Economists expect the index to rise to -9 points from -14 points in November. Above 0 indicates improving conditions, below indicates worsening conditions. Tends to have a muted impact because there are earlier regional indicators related to manufacturing conditions.
Also today, auctions for the sale of 2-year floating rate notes (FRNs) and 5-year notes will take place.