The yield on the US 10-year Treasury note fell to around 5.11% on Thursday, hitting a three-week low and marking a sharp reversal after reaching as high as 5.33% in the previous session following the release of strong inflation data. The decline came as a deepening selloff in equity markets, led by technology and artificial intelligence stocks, drove investors toward safe-haven government bonds. Data released Wednesday showed that annual headline inflation accelerated to 3.7% in September, exceeding forecasts of 3.6%, while core inflation edged up to 2.6%, above expectations of 2.5%. Chicago Fed’s Austan Goolsbee described the figures as “discouraging” and warned that the rapid expansion of AI-related infrastructure could also be overheating the economy. However, some policymakers continued to advocate a cautious approach toward further rate increases, with markets currently pricing in roughly a 73% probability that the Federal Reserve will leave interest rates unchanged this month.
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