U.S. Treasury yields dipped on Monday as the year’s final trading days began.

The 10-year Treasury yield fell by 3 basis points to 4.591%, staying near last week’s multimonth highs. The 2-year yield dropped by a similar margin to 4.297%.

Yields move inversely to bond prices, and one basis point equals 0.01%.

Investors are closing out the year by evaluating key data points and monetary policy signals. The Federal Reserve recently signaled fewer rate cuts for 2025, shaping expectations for its late-January meeting.

Upcoming economic reports are sparse but important. November’s pending home sales, the Chicago PMI, and the Dallas Fed’s manufacturing index will offer insights into housing, manufacturing, and overall economic activity. These indicators are crucial for gauging the economy’s health as 2024 wraps up.

Last week, job market data sent mixed signals. Initial jobless claims for the week ending Dec. 21 fell slightly and were below forecasts. However, continuing claims for Dec. 14 surged to their highest levels since November 2021, raising concerns about labor market resilience.

Markets will close early on Tuesday and remain closed Wednesday in observance of New Year’s holidays. Investors are using the downtime to assess risks for 2025, focusing on inflation, growth, and the Federal Reserve’s next moves.

As the year winds down, data releases and Fed outlooks could offer vital clues for navigating what’s ahead in the bond and equity markets.