U.S. Treasury yields rose slightly as one market threat began to recede: the spillover effects from year-end funding pressures in the repo market. Data from the New York Fed showed that benchmark repo rates appeared somewhat tight on Wednesday and Friday, around New Year’s Day. Last Friday, roughly a quarter of tri-party repo transactions were priced between 3.71% and 3.88%. However, on Monday, the tri-party repo rate stood at a more moderate 3.66%, with few transactions exceeding 3.75%. Currently, the yield on the 10-year U.S. Treasury note stands at approximately 4.171%, compared to 4.164% on Monday; the yield on the 2-year U.S. Treasury note is 3.465%, compared to 3.454% on Monday.