Bond Market Surges Following Fed's Recent Rate Cut, But Changes May Be Ahead in January
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Dec 11 2025
0mins
Source: MarketWatch
U.S. Government Debt Rally: U.S. government debt experienced a rally as bond traders reacted positively to the Federal Reserve's recent interest-rate cut decision.
Lower Treasury Yields: Treasury yields decreased across various maturities, with the 2-year and 10-year yields falling by up to 5 basis points to 3.51% and 4.12%, respectively.
Easing Funding-Market Pressures: Indicators of funding-market conditions suggested that financial pressures were beginning to ease.
Investor Caution: Despite the positive market response, some investors remain cautious about future developments.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
