US 10-Year Yield Holds Steady

2025-12-23 05:08 By Judith Sib-at 1 min. read

The yield on the US 10-year Treasury note held steady at 4.16% on Tuesday, following two consecutive days of gains, as investors weighed the outlook for monetary policy while keeping an eye on Treasury auctions.

After Monday’s $69 billion sale of 2-year notes, the Treasury is set to auction $70 billion of 5-year notes later today and $44 billion of 7-year notes on Wednesday.

On the policy front, markets are currently pricing in two quarter-point rate cuts by the Federal Reserve in 2026, amid signs of easing inflation and a cooling labor market, as well as President Donald Trump's calls for lower borrowing costs.

However, Fed officials remain deeply divided on the path ahead.

Governor Miran warned on Monday that recession risks could rise unless rate cuts continue, while President Hammack said on Sunday that policy is currently well positioned to pause and assess the economic impact of the 75-basis-point cuts implemented this year.



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