Treasury yields fluctuated on Tuesday, closing flat at 4.594% after a previous gain of 3 basis points to 4.613%, the highest level since May 30. The benchmark rate increased by 6 basis points on Monday. The 2-year Treasury remained little changed at 4.341%, following a similar increase in its previous session.
Markets are expected to be subdued on Tuesday due to the holiday-shortened trading schedule, which ends stock trading at 1 p.m. ET and bond market activity at 2 p.m. Markets will remain closed on Wednesday for the Christmas holiday.
Last week, the Federal Reserve reduced rate-cut projections, signaling only two more interest rate cuts in 2025, down from four potential cuts previously signaled in September. The yield jumped 13 basis points following this move.
Source: https://www.cnbc.com/2024/12/24/treasury-yields-retreat-ahead-of-the-christmas-holiday.html