Treasury Yields Edge Up
2025-12-22 14:51
By
Joana Taborda
1 min. read
The yield on the US 10-year Treasury note edged higher to around 4.16% on Monday, rebounding from two-week lows touched last week, as investors continued to assess the monetary policy outlook while preparing for a heavy slate of Treasury auctions.
The auction schedule begins later on Monday with a $69 billion sale of 2-year notes, followed by a $70 billion 5-year note auction on Tuesday and a $44 billion 7-year note auction on Wednesday.
On the monetary policy front, markets are currently pricing in two Fed interest-rate cuts in 2026, following a lower-than-expected inflation reading for November and amid US President Trump’s calls for looser monetary policy.
However, Fed officials remain divided on the outlook.
Cleveland Fed President Hammack said on Sunday that policy is well positioned to pause while Governor Miran reiterated last week that further easing may be warranted, citing signs that inflation has cooled.