January 2, 2026
Yields lower to start off year
Over in bond land, Treasury yields are lower before the opening bell Friday as investors are awaiting the finalized December manufacturing purchasing managers’ index (PMI) from S&P Global.
As of 7:01 AM ET, the yield on the 10-year note is decreasing two basis points (0.02%) to 4.15%, while the 30-year bond yield is falling one basis point (0.01%) to 4.83%. The yield on the two-year note, which is more sensitive to changes in monetary policy, is down one basis point (0.01%) to 3.46%.
Treasury yields were unchanged on Wednesday as both initial and continuing jobless claims declined. The yield on the 10-year note was up five basis points (0.05%) to 4.17%, while the 30-year bond yield rose three basis points (0.03%) to 4.84%. The yield on the two-year note increased two basis points (0.02%) to 3.47%. As of end of day Wednesday (December 31), futures markets are pricing in four basis points (0.04%) worth of rate cuts at the Federal Reserve's upcoming January meeting, with a cumulative 59 basis points (0.59%) worth of rate cuts by year-end 2026 and a cumulative 49 basis points (0.49%) worth of rate cuts by year-end 2027.
On the data front, the finalized reading of S&P Global’s manufacturing PMI for December is expected to come in at 51.8, similar to the prior month’s reading.
Mortgage rates were lower in the latest week.
For the week ending December 31, the average 30-year fixed mortgage rate was down three basis points (0.03%) to 6.15%, versus 6.91% a year ago. The 15-year fixed mortgage rate decreased six basis points (0.06%) to 5.44%, versus 6.13% a year ago.
Municipal Market Commentary
None at this time.
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