10-year Treasury yields fall as stronger GDP data clouds rate trajectory

U.S. Treasury yields fell slightly on Wednesday as investors positioned themselves for a shortened trading day ahead of the holiday.

THE Cash flow at 10 years The yield — the benchmark for U.S. government borrowing — was 1 basis point lower at 4.159% as of 4:15 a.m. ET.

The returns on the Cash flow over 2 years rating remained largely unchanged, at 3.528%. THE 30 year deposit The yield, for its part, changed little, remaining at 4.824%.

One basis point is 0.01%, or 1/100th of 1%, and yields and prices move inversely to each other.

As investors digested late Commerce Department data that showed the The American economy has grown by 4.3% in the third quarter – its fastest pace in two years – this higher-than-expected figure potentially complicates the Federal Reserve’s interest rate path.

National Economic Council Director Kevin Hassett – one of the leading contenders to succeed Jerome Powell as Fed chairman next year – told CNBC that the Fed remains “far behind” in rate cuts compared to other countries’ central banks, and that it is not cutting rates fast enough.

His comments contrast with those from Cleveland Fed President Beth Hammack, who said last weekend that rates should be held at their current level for several months because she believes inflation concerns still outweigh the weak labor market.

According to the CME FedWatch Toola majority of investors now expect rates to remain unchanged until April, when the Fed will resume cuts.

Bond markets will close early Wednesday at 2 p.m. and will be closed Thursday for Christmas Day.