US 10-Year Treasury Yield Little Changed At 5%
The yield on the US 10-year Treasury note hovered around 5% on Thursday, as investors continued to assess the monetary policy and economic outlook. The Fed left interest rates unchanged on Wednesday, as expected, and offered no clear signal of a rate hike in December, with Chair Warsh stressing that policymakers were not on a predetermined path. However, the central bank acknowledged that inflation remains elevated, while two policymakers dissented in favor of a rate hike. Meanwhile, fresh economic data showed that PCE inflation accelerated in September, as expected, with the annual core rate reaching 3.1%, remaining well above the Fed’s 2% target. Meanwhile, US GDP grew at a stronger-than-expected annualized rate of 3.4% in Q3, supported by AI-related investment and robust consumer spending. Initial jobless claims also came in below 200K. Against this backdrop, traders are pricing in nearly an 83% probability of a 25bps rate hike by the Fed in December.
The yield on the US 10-year Treasury note hovered around 5% on Thursday, as investors continued to assess the monetary policy and economic outlook. The Fed left interest rates unchanged on Wednesday, as expected, and offered no clear signal of a rate hike in December, with Chair Warsh stressing that policymakers were not on a predetermined path. However, the central bank acknowledged that inflation remains elevated, while two policymakers dissented in favor of a rate hike. Meanwhile, fresh economic data showed that PCE inflation accelerated in September, as expected, with the annual core rate reaching 3.1%, remaining well above the Fed’s 2% target.
Meanwhile, US GDP grew at a stronger-than-expected annualized rate of 3.4% in Q3, supported by AI-related investment and robust consumer spending. Initial jobless claims also came in below 200K. Against this backdrop, traders are pricing in nearly an 83% probability of a 25bps rate hike by the Fed in December.