Fri Dec 20 13:10:00 UTC 2024: ## Treasury Yields Dip as Inflation Data Looms, Government Shutdown Looms

**New York, NY –** Treasury yields edged down Friday as investors await the release of crucial inflation data, while the threat of a government shutdown adds to market uncertainty. The 10-year Treasury yield fell nearly four basis points to 4.534%, following a Thursday high of 4.57%, while the 2-year yield dipped five basis points to 4.268%.

The market is focused on the November personal consumption expenditures (PCE) price index, the Federal Reserve’s preferred inflation measure, due out later today. Analysts predict a 0.2% monthly increase and a 2.5% annual rise in the headline PCE, with core inflation expected at 0.2% monthly and 2.9% annually. Fed Chair Jerome Powell has already indicated that inflation will remain above the central bank’s 2% target.

This comes on the heels of the Fed’s Wednesday decision to cut interest rates by a quarter-percentage point to a target range of 4.25% to 4.50%. However, the Fed also revised its inflation forecast upwards and signaled only two potential rate cuts in 2025, a reduction from the four previously anticipated.

Adding to the economic uncertainty, the U.S. government faces a potential shutdown tonight after a House Republican spending bill failed to pass. The bill, backed by Donald Trump, would have funded the government for three months and suspended the debt ceiling for two years. Failure to reach an agreement will result in a partial government shutdown.

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