Treasury yields are little changed as investors weigh the state of the U.S. economy

Treasury yields were relatively unchanged to end the week as investors weighed the state of the U.S. economy and fears eased around trade and geopolitics.

The 10-year Treasury yield fell more than 1 basis point to 4.235%, as did the 30-year Treasury yield declined to 4.834%. The 2-year Treasury note yield also dropped more than a basis point to 3.598%.

One basis point is equal to 0.01%, and yields and prices move in opposite directions.

Investors’ concerns around trade and geopolitical risks have abated at the end of this week after U.S. President Donald Trump called off tariffs against eight European countries on Wednesday. Trump had threatened levies if the countries didn’t support his ambitions to take over Greenland.

This was after the U.S. President announced that he and NATO Secretary General Mark Rutte reached a “framework of a future deal with respect to Greenland,” which he confirmed in an interview with CNBC later that day.

It’s quiet on the economic data front, but investors are now looking ahead to the Federal Reserve’s interest rate decision on Jan. 28. Traders are widely expecting the Fed to hold rates steady, according to the CME FedWatch Tool. They’re currently anticipating two quarter-point cuts in 2026.

Ian Lyngen, head of U.S. rates strategy at BMO Capital, said in a note that “signs of a rebounding labor market” aren’t going to give “the Fed any urgency to continue lowering rates,” in the short term.

That being said, the economy has continued to send mixed signals, and its direction in 2026 remains highly uncertain – leaving the macro narrative vulnerable to sweeping shifts as further data is revealed,” Lyngen added.