USA 10-Year Treasury Bond Yield Higher again after Tuesday Fed Officials urge caution on the path to rate cuts.
The 10-year Treasury yield rose nearly 2 basis points to 4.198%. Earlier on Tuesday, the index climbed above 4.2% for the first time in three months, following a 12 basis point gain on Monday.
The rate of return is 2-Year Treasury Bond Meanwhile, the index rose more than 2 basis points to 4.052%.
Yields and prices move in opposite directions. 1 basis point equals 0.01%.
It was a quiet week in terms of data, but a busy week for Fed commentary, with speeches from many policymakers.
On Monday, Minneapolis Fed President Neel Kashkari said the longer-term trajectory for interest rates is likely to be higher than in the past, while Dallas Fed President Lori Logan said a patient approach is needed to lower rates. interest rate.
Kansas City Fed President Jeff Schmid also said Monday explain After the Federal Reserve cut interest rates by half a percentage point in September, it is appropriate to adopt a “cautious and prudent” approach to interest rate cuts.
Interest rates have actually risen since the Fed cut them by half a percentage point a month ago. Strong economic data was partly responsible for the gains, but there was also uncertainty over the extent of the central bank’s next rate cuts.
The market expects the Fed to cut interest rates only once during the rest of the year. Traders see an 89% chance of a 25 basis point rate cut at the Fed’s next meeting, which ends on November 7, according to Fed data CME’s FedWatch Tool Based on federal funds futures trading. However, the market believes that there is only a one-third chance that the Fed will cut interest rates again in December.
Philadelphia Fed President Patrick Harker will speak on Tuesday.
—CNBC’s Jeff Cox contributed to this report.
