Traders work on the floor of the New York Stock Exchange (NYSE) on December 15, 2025 in New York City, USA.
Brendan McDiarmid | Reuters
U.S. Treasury yields fell Wednesday as investors braced for shortened trading ahead of the holiday.
of 10 year treasury The yield, the benchmark for U.S. government borrowing, fell more than 3 basis points to 4.134%. yield of 2 years treasury Notes fell more than 1 basis point to 3.51%. of 30 year bond The yield fell more than 3 basis points to 4.794%.
One basis point is equal to 0.01%, or 1/100th of 1%, and yield and price are inversely proportional to each other.
On Wednesday, the Labor Department reported 214,000 jobless claims for the week ending Dec. 20, down from 224,000 the previous week and below the Dow Jones Industrial Average’s estimate of 225,000.
Investors continued to digest delayed Commerce Department data showing the U.S. economy grew 4.3% in the third quarter, the fastest pace in two years. But the stronger-than-expected numbers reported Tuesday could complicate the Federal Reserve’s policy on interest rates.
National Economic Council Chairman Kevin Hassett, one of the leading candidates to replace Jerome Powell as Fed chair next year, told CNBC that the Fed remains “well behind” other central banks in cutting interest rates and is not cutting rates fast enough.
His comments contrast with those from Cleveland Fed President Beth Hammack, who said over the weekend that she believed inflation concerns still outweighed weakness in the labor market and that interest rates should remain at current levels for several months.
A majority of investors now expect rates to remain on hold until April, at which point the Fed will resume cutting rates, according to the CME FedWatch tool.
The bond market will close early on Wednesday at 2pm and will be closed on Thursday for Christmas.
