10-year Treasury yield slips to start the week

The 10-year Treasury note yield slipped Monday as traders continued to digest the unexpectedly dovish tone of the U.S. Federal Reserve last week.

The yield on the 10-year Treasury was more than 1 basis point lower at 3.913%. On Thursday, the yield fell below the 4% level, hitting its lowest since July.

The 2-year Treasury yield eased by more than 3 basis points to 4.417%, below the closely watched 4.5% level.

Yields and prices move in opposite directions. One basis point equals 0.01%.

The Fed last week held its key interest rate steady and revealed that policymakers were penciling in at least three rate cuts next year — marking a more aggressive series of cuts than what was previously hinted. 

In fact, Deutsche Bank strategists on Monday described the Fed's move as a "big shift" from the higher-for-longer narrative, though they noted some Fed officials went against the notion rate cuts are a current topic of discussion.

"But the big question is now when these rate cuts might happen, and on Friday we had some mild pushback from Fed officials against the market excitement," they said in an early note.

On Friday, New York Fed President John Williams told CNBC's Steve Liesman: "We aren't really talking about rate cuts right now."

10-year yield this week