10-year government bond yield tops 4.6% before flat before Christmas

Treasury yields fluctuated on Tuesday in a holiday-shortened trading session ahead of the Christmas break.

The profitability of 10-year Treasury changed hands at 4.594% after rising 3 basis points to 4.613%, hitting its highest level since May 30. The benchmark interest rate rose 6 basis points on Monday. The 2-year treasury was also little changed at 4.341%, after rising 3 basis points in the previous session.

One basis point is equal to 0.01%. Yields move inversely to prices.

Tuesday is likely to be a muted day for US financial markets given the early close at 1pm ET for stock trading. The bond market closes at 2 p.m

Markets will remain closed on Wednesday for the Christmas holiday.

The benchmark 10-year yield jumped 13 basis points last week after the Federal Reserve cut forecasts for rate cuts, indicating just two more rate cuts in 2025, down from four potential cuts. which were signaled in September.