Traders work on the floor of the New York Stock Exchange (NYSE) on December 30, 2025 in New York City.
Spencer Pratt | Getty Images
US 10 year treasury Yields rose slightly on Wednesday, but were expected to decline in 2025 due to Federal Reserve interest rate cuts and persistent but declining inflation.
The 10-year Treasury yield rose less than 1 basis point to 4.136%. The two-year bond yield also last rose by less than 1 basis point to 3.459%.
Yields and prices move in opposite directions. 1 basis point equals 0.01%.
Yields reversed and rose after 199,000 new jobless claims were filed for the week ending Dec. 27, the Labor Department said Wednesday. This was down 16,000 from last week’s upwardly revised level of 215,000, and below the 220,000 expected by economists compiled by Dow Jones.
“While first-time jobless claims are typically volatile due to the holidays and severe winter weather, the lack of or significant weakness in the job market stands out in that there are no signs that the economy is close to the brink of recession,” said Christopher Rupkey, chief economist at FWDBONDS.
He added: “The strength in the labor market due to job losses is unmistakable and will likely continue into 2026, possibly including job losses, because so far Trump’s economic policies, with their sweeping changes to trade and immigration policy and the firing of thousands of federal employees, have not derailed the economy as much as many economists expected.”
The rise in yields in response to the report reflects another tumultuous year for bond markets, driven by factors such as uncertainty over President Donald Trump’s tariff policies and the impact of the Federal Reserve’s interest rate guidance.
10-year government bonds, year to date
