The benchmark 10-year Treasury yield was relatively unchanged on Wednesday as investors continued to monitor developments that could affect the Federal Reserve’s upcoming interest rate decision and speculated about the central bank’s next chair.
The yield on the 10-year Treasury was less than 1 basis point lower at 3.994%, while the 30-year bond yield moved down more than 1 basis point to 4.641%. The 2-year note yield was more than 1 basis point higher at 3.477%.
One basis point equals 0.01% and yields and prices move in opposite directions.
Providing a sign that the labor market may be holding steady, initial jobless claims for the week ended Nov. 22 were less than anticipated at 216,000, the Labor Department reported on Wednesday. That marks the lowest level since mid-April. Economists polled by Dow Jones had estimated 225,000 for the period.
Those on Wall Street are also waiting for news about who the next Fed chair could be after Treasury Secretary Scott Bessent told CNBC on Tuesday that there was “a very good chance” President Donald Trump would announce the next central bank leader by Christmas.
Bessent, who has been hunting for a successor to current Fed Chair Jerome Powell, said that the president had one interview to go.
“It’s his prerogative, whether it’s before the Christmas holidays or in the new year. But I think things are moving along very well,” Bessent added.
Trump’s allies and advisors believe White House National Economic Council Director Kevin Hassett is the frontrunner, Bloomberg reported. Hassett is seen as in sync with Trump’s preferences for lower interest rates.
Traders are currently pricing in a more than 80% chance of a quarter percentage point cut from the Fed in December, according to the CME FedWatch tool.
