US 10-Year Yield Rises Ahead Fed Minutes
The US 10-year Treasury yield climbed to 5.3% on Monday, near its highest level since March 2022 as investors assessed fresh economic data and prepared for the release of the Federal Reserve’s September meeting minutes. The latest ISM report showed that services-sector activity continued to expand, with the PMI at 54.9 in September, slightly below August but broadly in line with expectations. At the same time, cost pressures intensified, highlighting renewed inflation risks despite the moderation in business activity. Bond markets have faced persistent selling pressure in recent weeks, although Friday’s weaker-than-expected jobs report pushed yields lower and reduced expectations of another near-term Fed rate increase. Attention is now turning to Wednesday’s meeting minutes for further clues on the central bank’s policy outlook. Markets currently see an approximately 82% probability that the Fed will leave rates unchanged at its next meeting.
3% on Monday, near its highest level since March 2022 as investors assessed fresh economic data and prepared for the release of the Federal Reserve’s September meeting minutes. 9 in September, slightly below August but broadly in line with expectations. At the same time, cost pressures intensified, highlighting renewed inflation risks despite the moderation in business activity. Bond markets have faced persistent selling pressure in recent weeks, although Friday’s weaker-than-expected jobs report pushed yields lower and reduced expectations of another near-term Fed rate increase.
Attention is now turning to Wednesday’s meeting minutes for further clues on the central bank’s policy outlook. Markets currently see an approximately 82% probability that the Fed will leave rates unchanged at its next meeting.