U.S. Treasury yields fell on Tuesday as investors assessed the 2025 outlook. At 7:45 GMT, the 10-year Treasury yield dropped over two basis points to 4.5187%, while the 2-year yield decreased to 4.2333%.
Today’s decline followed Monday’s drop after the 10-year yield hit a multi-month high last week, helped by gains in the final quarter of 2024.
Investors are reviewing the year’s final economic data. Monday’s reports showed that the U.S. November pending home sales exceeded forecasts, reaching a one-year high, but Chicago’s factory activity slipped more than anticipated.
U.S. home price data are due later in the day, and weekly jobless claims and manufacturing reports will be released later in the week.
Markets are also weighing the Federal Reserve’s outlook, as the US central bank signalled fewer rate cuts ahead. They see no rate changes at the Fed’s January meeting.
Financial markets close early Tuesday and remain shut Wednesday for New Year’s Day.