Traders work on the floor of the New York Stock Exchange (NYSE) on January 28, 2026 in New York City.
Spencer Pratt | Getty Images
benchmark 10 year treasury Yields fell on Thursday as investors appreciated the U.S. Federal Reserve’s decision to keep interest rates on hold.
The 10-year Treasury yield fell more than 1 basis point to 4.235%, and the 2-year Treasury yield fell 2 basis points to 3.561%. The 30-year Treasury yield fell less than 1 basis point to 4.856%.
1 basis point equals 0.01%. Yields and prices move in opposite directions.
The Federal Reserve kept interest rates on hold at 3.75% from 3.5% at its January meeting on Wednesday, addressing questions about the central bank’s independence and ending a recent series of rate cuts as it awaits new leadership.
Afonso Borges, a fixed income analyst at Julius Baer, said the Fed’s pause was expected after three “insurance” rate cuts late last year.
Although negative votes emerged, such as Waller’s call for a 25 basis point rate cut, Borges said they did not threaten the Fed’s independence because a stable majority of policymakers remained insulated from political pressure.
Julius Baer continues to see enough signs of labor market weakness to justify a cumulative 50 basis point cut in rates in the first half of 2026, more than the market is currently pricing in, and reiterated his slightly overweight stance on U.S. bonds, noting that long-term Fed pauses and subsequent rate cuts have historically supported improved returns further down the yield curve.
