US 10-Year Treasury Yield Down to One-Month Low
The yield on the US 10-year Treasury note fell nearly 9 basis points to 5.04%, its lowest level in about a month, as a broad flight to safety triggered by renewed equity market volatility boosted demand for government bonds. Concerns over stretched AI valuations and elevated investment spending weighed on risk appetite, while escalating geopolitical tensions in the Middle East, amid reports that the US and Israel are preparing further strikes on Iran after the midterm elections, added to safe-haven demand. Meanwhile, the Federal Reserve is set to announce its monetary policy decision next week. Markets are pricing in an approximately 89% probability that the Fed will leave interest rates unchanged, while the odds of a 25-basis-point rate hike in December have risen to around 76%. On the data front, the latest jobless claims report showed initial claims falling to their lowest level since July.
The yield on the US 10-year Treasury note fell nearly 9 basis points to 5.04%, its lowest level in about a month, as a broad flight to safety triggered by renewed equity market volatility boosted demand for government bonds. Concerns over stretched AI valuations and elevated investment spending weighed on risk appetite, while escalating geopolitical tensions in the Middle East, amid reports that the US and Israel are preparing further strikes on Iran after the midterm elections, added to safe-haven demand. Meanwhile, the Federal Reserve is set to announce its monetary policy decision next week.
Markets are pricing in an approximately 89% probability that the Fed will leave interest rates unchanged, while the odds of a 25-basis-point rate hike in December have risen to around 76%. On the data front, the latest jobless claims report showed initial claims falling to their lowest level since July.