LONDON, Jan 2 (Reuters) - U.S. Treasury yields rose on Tuesday as traders returned from the holidays in a less exuberant mood, reining in their expectations for interest rate cuts in 2024.
The yield on 10-year Treasury notes was up 9.2 basis points (bps) to 3.952%. It hit an almost six-month low of 3.783% last week.
Yields tumbled in November and December as inflation cooled more than expected and the Federal Reserve called time on the rate-hiking cycle.
Yet many strategists have said the rally - which was the best two-month period for Treasuries since 2008 - had gone too far and that some unwinding was likely.
The two-year U.S. Treasury yield, which typically moves in step with rate expectations, was up 6.6 bps at 4.316%.
Investors on Tuesday were expecting 150 bps of Fed rate cuts next year, according to money market pricing, down from 160 bps or more last week.
The yield on the 30-year Treasury bond was
up 7.9 b
ps
to
4.097
%. (Reporting by Harry Robertson; editing by Dhara Ranasinghe)
