Treasury Yields Fluctuate
Published January 30, 2026
U.S. Treasury yields rose midweek ahead of the Federal Reserve’s policy meeting and anticipated interest rate decision. Yields moved lower toward the end of the week as investors digested the latest policy decision and employment data pointed to a steady labor market.
On Wednesday, the Federal Reserve announced its latest monetary policy decision following the conclusion of the January Federal Open Market Committee (FOMC) meeting. At the meeting, policy makers agreed to hold the benchmark rate steady at a range of between 3.50% to 3.75%. Some members noted little movement in inflation and the labor market, with a few members suggesting that the policy is now near neutral and others wanting time to allow recent rate cuts to filter through the economy before considering further easing.
“The US economy expanded at a solid pace last year and is coming into 2026 on a firm footing, while job gains have remained low, the unemployment rate has shown some signs of stabilization, and inflation remains somewhat elevated in support of our goals,” said Federal Reserve Chairman, Jerome Powell.
The benchmark 10-year Treasury note yield opened the week of January 26 at 4.23% and continued to trade as high as 4.28% on Wednesday. The 30-year Treasury bond opened the week at 4.83% and traded as high as 4.88% on Wednesday.
On Thursday, the U.S. Department of Labor reported that initial claims for unemployment decreased by 1,000 to 209,000 for the week ending January 24. This was more than the 205,000 claims that economists estimated. Continuing unemployment claims decreased by 38,000, reaching 1.83 million.
"There is no evidence that layoffs are picking up," said the chief U.S. economist at Santander U.S. Capital Markets, Stephen Stanley. "There are firms that are trying to reduce their headcount, but this is being done almost exclusively through attrition rather than outright job cuts. Layoffs on an underlying basis are roughly steady."
The 10-year Treasury note yield finished the week of 1/26 at 4.24%, while the 30-year Treasury note yield finished the week at 4.88%.
