Treasuries See Further Downside Amid Lingering Interest Rate Uncertainty

(RTTNews) - Treasuries moved to the downside over the course of the trading day on Friday, extending the pullback seen over the final two sessions of 2025.

After initially showing a lack of direction, bond prices slid firmly into negative territory as the day progressed. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, climbed 2.4 basis points to 4.187 percent.

The continued weakness among treasuries came amid lingering uncertainty about the outlook for interest rates in the new year.

While the Federal Reserve is widely expected to cut interest rates by at least another quarter point this year, CME Group's FedWatch Tool suggests mixed views about when the rate cut will come.

The Fed is not expected to lower interest rates at its next meeting later this month, however, with the FedWatch Tool indicating an 82.8 percent chance the central bank will leave rates unchanged.

Nonetheless, trading activity appeared somewhat subdued, as some traders remained away from their desks following the New Year's Day holiday on Thursday.

A lack of major U.S. economic data may also have kept some traders on the sidelines ahead of the release of several key reports next week, including the closely watched monthly jobs report.