The yield on the US 10-year Treasury was around 4.44%, not far from its lowest in about two months and well below the 2007 highs of 5% touched in October. In its November meeting, the Federal Reserve set a more dovish tone and signaled interest rates have peaked, prompting investors to consider rate cuts as early as March. Also, recent FOMC meeting minutes showed a cautious approach to future rate hikes, suggesting increases only if incoming information indicates insufficient progress in reducing inflation. At the same time, fresh data continues to point to an economic slowdown, with inflation and the labour market cooling. Meanwhile, demand for U.S. Treasury bonds maturing in 20 years was strong at an auction on Monday, with investors accepting the highest yield or return at 4.78%.
