Traders work on the floor of the New York Stock Exchange (NYSE) on Monday, December 22, 2025 in New York, USA.
Michael Nagle | Bloomberg | Getty Images
The yield on the 10-year U.S. Treasury note fell slightly on Monday as investors returned from the Christmas holidays and began looking ahead to the new year.
The 10-year Treasury yield fell more than 2 basis points to 4.108%. The two-year bond yield also fell by more than 2 basis points last time to 3.457%.
Yields and prices move in opposite directions. 1 basis point equals 0.01%.
The move comes as traders digest the latest economic data and assess the path of the Federal Reserve’s monetary interest rate.
The Labor Department announced Wednesday that there were 214,000 new jobless claims filed for the week ending Dec. 20. This was lower than expected and was down 10,000 cases from the previous week. Separately, the Commerce Department reported Tuesday that the U.S. economy grew 4.3% in the third quarter. This was the fastest expansion in two years.
Jacob Pedersen, head of equity research at Sidbank, said he expects the Fed to cut rates at least once next year.
“I don’t think it’s going to be as much as investors are expecting right now,” Pedersen told CNBC’s “Squawk Box Europe” on Monday.
“Of course, there’s going to be a lot of tension around Fed independence going into 2026. Financial markets need an independent Fed, and I think that’s going to be the case depending on how things play out.”
—CNBC’s Fred Imbert contributed to this report.
Correction: The Department of Commerce released third quarter GDP data last week. Previous versions incorrectly listed the time period.
