US long-dated Treasury yields ease as equities climb; AI results and Fed decision due this week
TLT•Long-dated US Treasury yields fell Monday as equities rose ahead of earnings from Microsoft, Alphabet and Amazon and this week’s Federal Reserve decision. The 10-year yield was down 2.2 basis points at 4.966%, while the 30-year yield fell 3 basis points to 5.285%.
1. Yields ease as stocks rise
Longer-dated US Treasury yields fell Monday as equities rose ahead of earnings reports from major AI companies and a Federal Reserve policy decision expected Wednesday. Anthropic’s filing of its initial public offering paperwork helped push stocks higher, while Microsoft, Alphabet and Amazon are due to report results this week.
2. Investors watch Fed and AI
Investors are watching what AI-related companies say about future spending and the economic outlook. The Fed is expected to leave rates unchanged; rate futures on Monday priced a 91% chance of a hold. Investors still expect inflation concerns to persist, following a September rate increase and sharply higher energy prices tied to the US-Israeli war with Iran.
3. Treasury yields and inflation
The 10-year Treasury yield was down 2.2 basis points at 4.966%, and the 30-year yield was down 3 basis points at 5.285%. The two-year yield rose 1.5 basis points to 4.697%. The 2-year/10-year yield spread was 26.7 basis points, while the 10-year inflation breakeven rate was 2.342%.
