Traders wear “2026” glasses as they work on the floor of the New York Stock Exchange (NYSE) at the opening bell in New York on December 31, 2025.
Timothy A. Clary | Afp | Getty Images
The benchmark 10-year Treasury yield rose on Friday, the first trading day of the year, as investors weighed the economic outlook and the prospects for further rate cuts.
The yield on the 10-year Treasury was more than 3 basis points higher at 4.191%. The yield on the 2-year Treasury was last seen up by less than 1 basis point at 3.475%. The 30-year Treasury yield rose more than 3 basis points to 4.869%.
Yields and prices move in opposite directions. One basis point equals 0.01%.
Bond markets were closed on Thursday for New Year’s Day.
On Friday, the S&P Global U.S. Manufacturing PMI showed a reading of 51.8 for December. That’s down a bit from the 52.2 recorded in November and roughly in line with the 51.7 that economists polled by Dow Jones had estimated.
Investors are keeping a close eye on the path of U.S. monetary policy in the new year. The last FOMC meeting was divisive and concluded with a close call to lower interest rates by a quarter-percentage point. It was approved by a 9-3 vote – the most dissents since 2019. The next decision will be made on January 28.
Fed minutes released Tuesday showed officials were mostly confident that economic growth would continue at a “moderate” pace, though they also warned of a downside risk to employment and upside risk to inflation.
— CNBC’s Jeff Cox contributed to this report.