On the first trading day of 2025, treasury yields decline.

On the first trading day of the new year, U.S. Treasury yields were lower due to investors' contemplation of potential market developments in the upcoming months.

On Thursday at 7:30 a.m. ET, the 10-year Treasury yield decreased by 5 points to 4.523%, while the 2-year Treasury yield fell by 3 basis points to 4.219%.

An inverse relationship exists between yields and prices, with one basis point equivalent to 0.01%.

The bond markets resumed operations on Thursday following an early closure on Tuesday and a day of rest on Wednesday in honor of New Year's Day. The yield on the 10-year Treasury fluctuated throughout 2024, starting the year below 3.9%, rising above 4.7% in the spring, falling back below 3.7% in the fall, and finishing the year above 4.5%.

Despite the holiday-shortened week lacking economic data, investors remain vigilant for indications about the future of the economy, monetary policy, and markets in the upcoming months.

The weekly initial jobless claims figures will be released on Thursday, providing new information about the labor market. On Friday, data on the manufacturing sector will be released. Following that, attention will shift to a set of jobs data and the minutes from the Federal Reserve's latest meeting, both of which are scheduled for next week.

According to CME Group's FedWatch tool, policymakers are expected to hold rates steady at their meeting in January, as the Fed indicated in December that fewer interest rate cuts were on the horizon.