U.S. Treasury yields climbed on Tuesday as markets reopened after Monday's Christmas holiday and investors looked ahead to 2023.
The yield on the 10-year Treasury note was up by around 10 basis points to trade at 3.851%. Meanwhile, the 2-year Treasury yield rose 7 basis points to 4.391%.
Yields and prices have an inverted relationship. One basis point is equivalent to 0.01%.
Treasurys
The move in bond yields put pressure on growth stocks, dragging down technology shares and the tech-heavy Nasdaq Composite, which fell almost 1.4%.
The Fed has been hiking interest rates in 2022 in an effort to fight persistently high inflation. The central bank increased rates by a further 50 basis points earlier this month after implementing 75 basis point rate hikes at each of its previous four meetings.
Concerns about these rate hikes dragging the U.S. economy into a recession have spread among investors in recent weeks as Wall Street awaits a new trading year.