TREASURIES — US 10 — year yields follow European yields down while 2 — year yields rise
(Updates to afternoon trading) 10-year Treasury yield last falls 2.1 bps to 5.223% after touching 5.1727% CME FedWatch shows 22% odds of a quarter-point October hike, 71% odds for December France's 10-year yield falls to 4.8034% from Monday's 4.8958% By Sinéad Carew Oct 13 (Reuters) — Longer-dated US Treasury yields were slightly lower on Tuesday, following the path of their European counterparts, while short-dated 2-year yields rose on the eve of key US inflation data. Benchmark 10-year yields touched their lowest levels since October 2 on Tuesday before paring declines. Last week the benchmark hit a 24-year high, with investors worried about the prospect of rising inflation. Euro zone yields, particularly longer-dated bonds, dipped as a selloff in technology stocks in Asia drove some investors to the safety of government debt. "One of the reasons why the US market was kind of holding in was because of what's going on in Europe. And we just seem to be following European rates in general," said Tom di Galoma, managing director at Mischler Financial. On Tuesday, France's 10-year yield fell as low as 4.8034% after finishing Monday at 4.8958%. French government bonds have sold off sha
8958% By Sinéad Carew Oct 13 (Reuters) — Longer-dated US Treasury yields were slightly lower on Tuesday, following the path of their European counterparts, while short-dated 2-year yields rose on the eve of key US inflation data. Benchmark 10-year yields touched their lowest levels since October 2 on Tuesday before paring declines. Last week the benchmark hit a 24-year high, with investors worried about the prospect of rising inflation. Euro zone yields, particularly longer-dated bonds, dipped as a selloff in technology stocks in Asia drove some investors to the safety of government debt.
"One of the reasons why the US market was kind of holding in was because of what's going on in Europe. And we just seem to be following European rates in general," said Tom di Galoma, managing director at Mischler Financial. 8958%. French government bonds have sold off sharply as the country's government is trying to enact an unpopular budget to lower its deficit, which is a difficult prospect ahead of next year's election.
"The troubled French debt market has been one of the factors pushing global rates higher in recent months. So the 8-basis-point yield decline for French government paper is giving other markets a chance to breathe," said Lou Brien, market strategist at DRW Trading. Bettors See Fed Staying On Hold New York Federal Reserve President John Williams said he still sees one more interest-rate hike as appropriate this year, Bloomberg News reported on Tuesday, adding that at the moment does not believe rate increases will be necessary in 2027. 1727%, which was its lowest point since early October.
5355%. 7574%. Two weeks before its October 27-28 meeting, traders still expect the Federal Reserve will hold rates steady and save its next hike for December. 8%, according to CME Group's FedWatch tool.
Earlier, Chicago Fed President Austan Goolsbee said there needs to be some progress to get back on the kind of rate-cutting path the central bank had been on, Semafor reported on Tuesday. US Federal Reserve Governor Christopher Waller told a Bloomberg event in Mumbai that the recent rise in US bond yields has been due to stronger economic growth and large-scale investment in artificial intelligence rather than to higher inflation expectations, which remain "well anchored". Wednesday will bring September's consumer price index report, a widely followed inflation barometer.
Consumer prices remain elevated in part due to the months-long Middle East war that has boosted the price of oil. 5%. 3% a year for the next decade. 1 basis points.
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