US Treasury Yields Fall on Tuesday
The yield on the US 10-year Treasury note fell nearly 5 basis points to 5.09% on Tuesday, hovering near one-month lows, following weaker housing data while investors also continued to assess persistent inflationary pressures ahead of the Fed’s interest rate decision next week. Housing starts fell 5.2% in September, while pending home sales dropped to a record low, reflecting the continued strain of elevated mortgage rates on housing demand. The Fed is widely expected to leave interest rates unchanged next week, while markets anticipate a 25bps rate hike in December. Meanwhile, the 2-year Treasury yield, which is particularly sensitive to near-term monetary policy expectations, edged down to 4.76%. The 30-year Treasury yield which is more sensitive to longer-term inflation and geopolitical risks, also declined to 5.42%.
The yield on the US 10-year Treasury note fell nearly 5 basis points to 5.09% on Tuesday, hovering near one-month lows, following weaker housing data while investors also continued to assess persistent inflationary pressures ahead of the Fed’s interest rate decision next week. Housing starts fell 5.2% in September, while pending home sales dropped to a record low, reflecting the continued strain of elevated mortgage rates on housing demand. The Fed is widely expected to leave interest rates unchanged next week, while markets anticipate a 25bps rate hike in December.
Meanwhile, the 2-year Treasury yield, which is particularly sensitive to near-term monetary policy expectations, edged down to 4.76%. The 30-year Treasury yield which is more sensitive to longer-term inflation and geopolitical risks, also declined to 5.42%.