U.S. yields ease off lows as stocks rally
TLT•Longer-dated U.S. Treasury yields declined on Tuesday but rose from earlier lows as equities rallied. The 10-year yield fell 1.5 basis points to 5.121%, while the chance of a Fed rate hike next week fell to 17.2%.
1. Yields move off lows
Longer-dated U.S. Treasury yields declined on Tuesday but were well above their earlier lows as U.S. equities rallied, including a reversal in AI stocks. The 10-year yield fell 1.5 basis points to 5.121%, after reaching 5.073%; the 30-year yield fell 4.2 basis points to 5.431%. The two-year yield rose 3 basis points to 4.791%.
2. Rate odds and housing
The market-implied chance of a Federal Reserve rate hike of at least 25 basis points next week stood at 17.2%, down from 22.1% a week earlier and 57.6% a month earlier. September pending home sales fell 7.3% to 66.0, the lowest reading since the series began in 2001, while single-family homebuilding and permits also fell sharply.
