Overview
- Long‑term U.S. yields pulled back modestly after heavy selling, with the 30‑year around 5.553%, the 10‑year near 5.22% and the 2‑year about 4.876%.
- Investors are watching the Fed’s preferred inflation gauge, the PCE index, and trading tools show roughly a 45% chance of a further rate hike at the October meeting.
- New York Fed chief John Williams urged no rush to act and said policymakers have time to gather more data before deciding on October policy.
- The selloff has been driven by a mix of rising inflation expectations, large U.S. debt issuance to fund deficits and elevated oil prices tied to the Middle East conflict.
- Higher yields are spilling over globally, lifting German, French and Japanese borrowing costs and pushing up mortgage and corporate borrowing rates even as stock markets so far remain resilient.