US 10Y Yield Holds Firm on Hawkish Fed Remarks
The yield on the US 10-year Treasury note held around 4.97% on Wednesday, remaining close to its highest level in 19 years as hawkish comments from Federal Reserve officials strengthened expectations for additional interest rate hikes this year. Richmond Fed President Tom Barkin warned on Tuesday that inflationary shocks could take time to fade and that elevated price pressures risk becoming entrenched. Boston Fed President Susan Collins also said in a LinkedIn post that she supported last week’s rate hike amid concerns that future inflation could remain above the 2% target. Markets are currently pricing in roughly a 54% probability of another Fed rate increase in October. Meanwhile, oil prices extended their decline for a sixth consecutive session after President Donald Trump said US officials had a very good meeting with Iranian envoys, easing inflation concerns and reducing pressure on the Fed to tighten policy aggressively.
97% on Wednesday, remaining close to its highest level in 19 years as hawkish comments from Federal Reserve officials strengthened expectations for additional interest rate hikes this year. Richmond Fed President Tom Barkin warned on Tuesday that inflationary shocks could take time to fade and that elevated price pressures risk becoming entrenched. Boston Fed President Susan Collins also said in a LinkedIn post that she supported last week’s rate hike amid concerns that future inflation could remain above the 2% target. Markets are currently pricing in roughly a 54% probability of another Fed rate increase in October.
Meanwhile, oil prices extended their decline for a sixth consecutive session after President Donald Trump said US officials had a very good meeting with Iranian envoys, easing inflation concerns and reducing pressure on the Fed to tighten policy aggressively.