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US Treasury Yields Fall Amid Weak Bond Demand

12/26/2025

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Story summary
  • US Treasury yields declined after the Christmas holiday, with the 10-year at 4.22% and the 2-year at 3.48%.
  • Demand weakened at some short-dated bond auctions, with lower bid-to-cover ratios.
  • Traders priced in about an 18% probability of a Federal Reserve rate cut in January.
  • Analysts say that 214,000 initial jobless claims and 4.3% first-quarter growth, the fastest in two years, will keep inflation and growth from driving yields lower.