US 10-Year Treasury Yield Lowest in 8 Weeks
The yield on the US 10-year Treasury note fell to 2.91% on Monday, its lowest level since mid-September, as a sharp decline in oil prices helped to ease inflation concerns. Sentiment was also supported by growing hopes for a diplomatic resolution to the conflict in the Middle East, following reports that President Trump wants to give negotiations with Iran more time and that Iran’s Supreme Leader had authorised talks. These developments helped ease concerns over further supply disruptions and their potential impact on inflation, at least for now. Meanwhile, investors are bracing for an event-packed week, with the US midterm elections and key economic releases, including the jobs report, expected to provide further clues about the Federal Reserve’s policy outlook. Last week, the Fed left interest rates unchanged, as widely expected. However, markets continue to price in another 25-basis-point rate hike in December, with the probability of such a move holding at around 75%.
The yield on the US 10-year Treasury note fell to 2.91% on Monday, its lowest level since mid-September, as a sharp decline in oil prices helped to ease inflation concerns. Sentiment was also supported by growing hopes for a diplomatic resolution to the conflict in the Middle East, following reports that President Trump wants to give negotiations with Iran more time and that Iran’s Supreme Leader had authorised talks. These developments helped ease concerns over further supply disruptions and their potential impact on inflation, at least for now.
Meanwhile, investors are bracing for an event-packed week, with the US midterm elections and key economic releases, including the jobs report, expected to provide further clues about the Federal Reserve’s policy outlook. Last week, the Fed left interest rates unchanged, as widely expected. However, markets continue to price in another 25-basis-point rate hike in December, with the probability of such a move holding at around 75%.