US 10-Year Treasury Yield Pulls Back after Fed Minutes

2025-12-30 19:22 By Agna Gabriel 1 min. read

The yield on the 10-year US Treasury pared earlier gains to 4.125% on Tuesday, moving closer to its lowest level in more than three weeks, as investors assessed the policy outlook following the release of minutes from the Federal Reserve’s December meeting.

The minutes showed that most Federal Open Market Committee members believe interest rate cuts are likely next year if inflation continues to ease.

However, policymakers remain divided on risks, with some worried that inflation could become entrenched and require tighter policy, while others favour deeper cuts to support a softening labour market.

In December, the Fed cut rates by 25 basis points to a 3.5%–3.75% range, the third reduction this year, though the decision included dissenting views.

The Fed’s projections also suggested greater optimism on economic growth.

Markets are also watching for the appointment of the next Fed chair.



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