Treasury yields mixed as investors weigh interest rate outlook

U.S Treasury yields were mixed on Wednesday as investors considered what could be on the horizon for interest rates and the economy ahead of the Thanksgiving holiday.

At 4:01 a.m. ET, the yield on the 10-year Treasury was down by over one basis point to 4.4022%. Meanwhile, the yield on the 2-year Treasury was little changed and was last less than one basis point higher at 4.8868%.

Yields and prices move in opposite directions. One basis point equals 0.01%.

Bond markets did not react strongly to the release of the Federal Reserve's latest meeting minutes on Tuesday, which did not suggest interest rate cuts will come soon. The minutes also noted that inflation remains too high above the Fed's 2% target.

Data published since that meeting, which took place on Oct. 31 and Nov. 1, has however indicated that inflationary pressures are easing. The consumer price index reflected a 3.2% increase on an annual basis in October, which was below previous estimates.

That prompted many investors to believe the Fed is done hiking rates and raised questions about when rate cuts could begin, despite Fed officials remaining quiet on this topic.

One more Fed meeting is scheduled for December. Markets were last pricing in an almost 95% chance of rates being left unchanged then, according to CME Group's FedWatch tool , which was slightly lower than before the Fed's meeting minutes.

On Wednesday, durable goods orders data for October will be released alongside weekly initial jobless claims figures, which are being published earlier in the week than usual as markets will be closed on Thursday for Thanksgiving.