Treasury yields were slightly lower on Thursday as investors reacted to Donald Trump's sweeping election victory and awaited the U.S. Federal Reserve's decision on interest rates.
The 10-year Treasury yield fell more than 1 basis point to 4.409% after jumping over 14 points to hit 4.433% in the previous session, notching its highest level since July.
The yield on the 2-year Treasury fell 2 basis points to 4.247%, paring some of its gains after rising about 7 points to reach 4.274% on Wednesday.
Yields and prices move in opposite directions. One basis point equals 0.01%.
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Trump's stunning victory over Vice President Kamala Harris marks a historic return to the White House for one of the most divisive figures in modern American politics.
It has fueled questions about whether Trump will set about introducing tax cuts and steep tariffs, which could boost economic growth but also widen the fiscal deficit and reignite inflation.
Investor focus, meanwhile, shifts to the Federal Reserve on Thursday. The U.S. central bank is widely expected to deliver another interest rate cut, with financial markets pricing in the prospect of a quarter-point move lower as a near certainty.
Money Report
The fed funds rate, which sets what banks charge each other for overnight lending but often influences consumer debt as well, is currently targeted in a range between 4.75%-5.0%.
Market pricing currently favors another quarter-point cut in December, followed by a January pause, then multiple reductions through 2025.
On the data front, investors will monitor the latest weekly initial jobless claims figures and preliminary readings of third-quarter productivity and unit labor costs at 8:30 a.m. ET.
A September reading of wholesale inventories and consumer credit data will both follow slightly later in the session.
— CNBC's Jeff Cox contributed to this report.
