The 10-year Treasury yield remains above 4.5% following the Fed's indication of a slower pace for interest rate cuts.

On Thursday, the Federal Reserve signaled that fewer rate cuts could be on the horizon next year, and the stock market responded by climbing.

The yield on the rose decreased by more than two basis points to 4.331%, after falling short of 4.5% in the previous session, which was perceived as a sign of decreased volatility.

Prices and yields move in opposite directions. One basis point equals 0.01%.

On Wednesday, the Fed lowered interest rates by a quarter-percentage point, following two previous reductions.

Despite raising its inflation forecast, Chair Jerome Powell indicated a hawkish tone on the outlook for next year, with only two possible rate cuts in the horizon, down from the four previously signposted in September.

The probability of another rate cut by the Fed during their first policy meeting in January decreased to less than 10%, according to CME FedWatch tool's fed funds futures trading.

On Thursday, investors anticipate receiving updated information on the labor and housing markets, as well as the final U.S. GDP data for the quarter.