US 10-Year Yield Slips on Warsh Comments
The US 10-year Treasury yield slipped to around 5.06% on Monday, hovering near four-week lows as dovish signals from Federal Reserve Chair Kevin Warshprompted traders to dial back bets on an October rate hike. Speaking at the IMF’s annual meetings in Bangkok on Friday, Warsh refrained from indicating the outcome of this month’s FOMC meeting but noted that hotter-than-expected inflation had not changed his assessment of the US economy. The Fed has since entered its blackout period ahead of the October 27—28 policy meeting, with markets pricing in roughly an 84% probability of interest rates remaining unchanged. Meanwhile, investors monitored European bond markets amid violent protests in France and neighboring countries, as well as escalating hostilities between Russia and Ukraine.
The US 10-year Treasury yield slipped to around 5.06% on Monday, hovering near four-week lows as dovish signals from Federal Reserve Chair Kevin Warshprompted traders to dial back bets on an October rate hike. Speaking at the IMF’s annual meetings in Bangkok on Friday, Warsh refrained from indicating the outcome of this month’s FOMC meeting but noted that hotter-than-expected inflation had not changed his assessment of the US economy. The Fed has since entered its blackout period ahead of the October 27—28 policy meeting, with markets pricing in roughly an 84% probability of interest rates remaining unchanged.
Meanwhile, investors monitored European bond markets amid violent protests in France and neighboring countries, as well as escalating hostilities between Russia and Ukraine.