Long-Maturity Treasuries Fall After Market’s Best Year in Five

Long-maturity Treasuries began 2026 on the defensive following the market’s biggest annual gain in five years, as investors focused on the potential for additional Federal Reserve interest-rate cuts to stoke inflation.

While the losses were limited, the 30-year’s yield was up by almost three basis points to 4.87% on Friday. The yield hit 4.88% earlier, the highest level since September. Shorter-maturity yields that are more closely tied to the interest rate set by the Fed were little changed to lower on the day.