The yield on the US 10-year Treasury note steadied around 5.3% on Thursday after pulling back in the previous session, as the latest FOMC minutes pointed to a hawkish stance among policymakers amid elevated inflation risks. Minutes from the Federal Reserve’s September meeting showed that all 19 policymakers supported the September rate hike, while most believed another increase would be appropriate by year-end. Markets broadly expect the Fed to leave policy unchanged this month, while the probability of a December hike currently stands at around 78%. Investors now await the latest weekly US jobless claims data for further insight into labor market conditions. Meanwhile, concerns over a potential escalation between the US and Iran, along with continued threats to oil flows from the Middle East, kept crude prices elevated and inflation risks high.
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