U.S. Treasury yields rose on Thursday as investors assessed the U.S. Federal Reserve's decision to hold interest rates steady.

The 10-year Treasury yield rose more than one basis point to 4.267%, while yields on the 2-year Treasury note remained steady at around 3.584%. The 30-year Treasury yield rose about three basis points to 4.89%.

One basis point is equivalent to 0.01%. Yields and prices move in opposite directions.

On Wednesday at its January meeting, the Fed left rates unchanged at 3.5%–3.75%, ending a recent run of interest rate cuts, as the central bank navigates questions about its independence and awaits a new leader.

Afonso Borges, fixed income analyst at Julius Baer, said the Fed's pause was expected, having delivered three "insurance" rate cuts late last year.

While dissenting votes emerged, including Governor Waller's call for a 25-basis-point cut, Borges said these do not threaten Fed independence, as a stable majority of policymakers remain insulated from political pressure.

Julius Baer continues to see sufficient signs of labor-market weakness to justify a cumulative 50-basis-point rate cut in the first half of 2026, more than markets currently price in, and reiterated its slight overweight stance on U.S. fixed income, noting that prolonged Fed pauses followed by cuts have historically supported stronger returns further out on the yield curve.