Traders work on the floor of the New York Stock Exchange (NYSE) on Monday, December 22, 2025 in New York, USA.
Michael Nagle | Bloomberg | Getty Images
U.S. 10-year Treasury yields rose on Tuesday, the penultimate day of the year, as markets focused on the latest December Federal Reserve meeting minutes.
The 10-year Treasury yield rose more than 2 basis points to 4.141%. The yield on the two-year note rose less than 1 basis point to 3.467%.
1 basis point equals 0.01%. Yield and price are inversely related.
Investors are looking forward to the December 9-10 Federal Open Market Committee meeting minutes, scheduled to be released at 2 p.m. ET, which will include details on the decision to approve the quarterly rate cut. As a result, the federal funds target range has been lowered to 3.50% to 3.75%.
A third interest rate cut this year has been controversial, with some policymakers arguing for further easing to prevent further weakness in the labor market, while others say policy is already sufficiently accommodative and risks accelerating inflation.
“Our basic assumption is that the committee will continue to be incentivized to maintain as much flexibility as possible until the FOMC decision on January 29th. We expect this stance to remain consistent throughout 2025 and apply into the new year,” said Ian Lingen, head of U.S. rates strategy in the fixed income strategy team at BMO Capital Markets.
