10-year Treasury yield dips as investors assess interest rate outlook for 2026 – CNBC

10-year Treasury yield dips as investors assess interest rate outlook for 2026 – CNBC

ByWirePaw
10-year Treasury yield dips as investors assess interest rate outlook for 2026 – CNBC

Traders work on the floor of the New York Stock Exchange (NYSE) in New York, US, on Monday, Dec. 22, 2025.
Michael Nagle | Bloomberg | Getty Images

The U.S. 10-year Treasury yield was slightly lower on Monday as investors returned from the Christmas holiday and began to look ahead to the new year.

The yield on the 10-year Treasury slipped more than 2 basis points to 4.108%. The yield on the 2-year Treasury was also last seen more than 2 basis points lower at 3.457%.

Yields and prices move in opposite directions. One basis point equals 0.01%.

The moves come as traders digest the latest economic data and assess the Federal Reserve’s monetary rate path.

The Labor Department reported on Wednesday initial jobless claims of 214,000 for the week ending Dec. 20. This was below expectations and a 10,000 decrease from the prior week. Separately, the Commerce Department reported on Tuesday that the U.S. economy grew by 4.3% in the third quarter — the country’s fastest pace of expansion in two years.

Jacob Pedersen, head of equity research at Sydbank, said he anticipated at least one interest rate cut from the Fed next year.

“That is probably not as much as investors are expecting right now,” Pedersen told CNBC’s “Squawk Box Europe” on Monday.

“We’ll, of course, have a lot of tension regarding Fed independence moving further into 2026. The financial markets need an independent Fed and I think that will be quite visible depending on how things pan out,” he added.

— CNBC’s Fred Imbert contributed to this report.

Correction: The Commerce Department reported third-quarter GDP data last week. A previous version misstated the period.

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