U.S. 2-year Treasury yield turns lower after dovish Fed comments
TLT•TLT•TLT•TLT•The 2-year Treasury yield fell 3.51 basis points to 4.889% after Fed official John Williams said there was no need for urgency on another rate hike. Traders’ odds of an October hike eased to 50% from nearly 70%.
The 2-year Treasury yield turned lower after New York Fed President John Williams said the central bank had time to weigh economic data before deciding when to raise rates again. Traders priced a 50% chance of a quarter-point hike at the Fed’s next meeting, down from nearly 70% earlier in the day. Williams said there was “no need for urgency” after the Fed raised rates by 25 basis points in September.
The 2-year yield fell 3.51 basis points to 4.889%, after earlier reaching 4.9596%, its highest since May 2024. The 10-year yield rose 1.32 basis points to 5.255%, after touching 5.2932%, its highest since mid-June 2007; the 30-year yield rose 3 basis points to 5.592%. Separately, the Conference Board’s consumer confidence index fell 6.7 points to 81.9 in September, its lowest level since 2014.
