Treasuries fell on Tuesday as investors became increasingly cautious about holding long-term government debt due to uncertainty over the path of fiscal policy. The gap between yields on 10-year and 2-year securities has widened significantly, with the 10-year yield reaching 4.62% – its highest level since 2022.
The steepening trend in the curve, which has dominated trading in the market, is attributed to investors shunning risk amid concerns over future policy decisions. Trading volumes were also lower than usual due to the holiday-shortened session, with activity only about half as much as normal.
Source: https://www.bloomberg.com/news/articles/2024-12-24/treasuries-fall-as-long-rates-expand-gap-over-short-maturities