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Yields fall from near 3-week highs following cooling wage, housing data


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NEW YORK — U.S. Treasury yields dipped

from nearly 3-week highs on Tuesday following economic data that

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showed slowing wage growth and a cooling housing market.

The Employment Cost Index rose 1% in the fourth quarter,

down from a peak of 1.4% in the first quarter of 2022, while

wages and salaries grew 1% compared to 1.3% in the previous

quarter, according to the U.S. Bureau of Labor Statistics.

Home prices, meanwhile, rose 6.8% in November compared with

the same time last year, and slowed from the 8.7% gain in

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October, according the S&P CoreLogic Case-Shiller Home Price

composite index of 20 metropolitan areas.

Rising wages and housing costs have been chief concerns of

the Federal Reserve in its battle with inflation. The central

bank is widely expected to raise benchmark interest rates by 25

basis points to a range of 4.50% and 4.75% at the conclusion of

its policy meeting on Wednesday.

“All eyes are on the Fed this week and the Street’s

expectations for a 25 basis point rate hike. Investors will

keenly listen to Chairman Powell’s comments for any indication

of the Fed wavering from its aggressively hawkish stance,” said

Craig Johnson, chief market technician at Piper Sandler.

The yield on 10-year Treasury notes was down 5.3

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basis points to 3.498%. The yield on the 30-year Treasury bond

was down 3 basis points to 3.630%.

A closely watched part of the U.S. Treasury yield curve

measuring the gap between yields on two- and 10-year Treasury

notes, seen as an indicator of economic

expectations, was at -70.3 basis points.

The two-year U.S. Treasury yield, which typically

moves in step with interest rate expectations, was down 6.2

basis points at 4.199%.

January 31 Tuesday 9:08AM New York / 1408 GMT

Price Current Net

Yield % Change


Three-month bills 4.585 4.7038 0.043

Six-month bills 4.66 4.8387 -0.010

Two-year note 99-221/256 4.197 -0.064

Three-year note 99-238/256 3.8999 -0.068

Five-year note 99-128/256 3.6102 -0.073

Seven-year note 99-162/256 3.5597 -0.067

10-year note 105-48/256 3.4939 -0.057

20-year bond 103-120/256 3.7498 -0.041

30-year bond 106-200/256 3.6256 -0.034


Last (bps) Net



U.S. 2-year dollar swap 28.00 0.25


U.S. 3-year dollar swap 14.00 -0.50


U.S. 5-year dollar swap 5.50 -0.50


U.S. 10-year dollar swap -2.00 0.25


U.S. 30-year dollar swap -38.25 -0.50


(Reporting by David Randall;

Editing by Bernadette Baum)


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