A trader works on the floor of the New York Stock Exchange during the opening bell on Nov. 26, 2024.
U.S. Treasury yields fell on Monday as investors sought out safe-haven assets amid a massive stock market sell-off.
The 10-year Treasury yield slipped nine basis points to 4.532%, while the 2-year Treasury yield was last trading at 4.197% after falling nearly eight basis points.
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WATCH HEREOne basis point equals 0.01%, and yields move inversely to prices.
Stocks tumbled on Monday, with the Nasdaq Composite being hit hard by a large decline in the technology sector.
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Last week, Chinese artificial intelligence startup DeepSeek released an open-source AI model that reportedly outperformed OpenAI's in several tests. The company said it launched the large-language model in December for less than $6 million, causing investors to question the billions of dollars they have spent to build and train AI models.
"Bonds offer ballast to one's portfolio, and that's why I'm not surprised that people have gravitated toward treasuries as a safe haven," said Sam Stovall, chief investment strategist at CFRA Research.
On top of the tech rout, investors are bracing for the Federal Reserve's first meeting of the year, with a policy announcement due Wednesday.
Money Report
The Fed is facing pressure from newly inaugurated President Donald Trump, who said last week he expects to see interest rates come down.
"I'll demand that interest rates drop immediately," Trump said at the World Economic Forum in Davos, Switzerland, speaking to an audience of global leaders. "And likewise, they should be dropping all over the world. Interest rates should follow us all over."
However, traders are pricing in a more than 99% chance that the Fed will leave interest rates unchanged, according to the CME Group's FedWatch Tool. At its December meeting, the Fed penciled in only two interest rate cuts in 2025.
