The yield on the US 10-year Treasury note remained below 5.1% on Friday after falling sharply in the previous session, as a global equity selloff boosted safe-haven demand for government bonds. Investors are increasingly pricing in a potential slowdown in the artificial intelligence capital expenditure boom, which has been a major driver of the US economy and financial markets. Meanwhile, market participants continued to evaluate the Federal Reserve’s monetary policy outlook, with stronger-than-expected US economic data reinforcing expectations of further interest rate hikes. Markets are currently pricing in approximately a 72% probability that the Fed will leave rates unchanged this month, while the likelihood of a December rate hike has climbed to 92%. Cleveland Fed President Beth Hammack cautioned that the central bank may need to raise interest rates more aggressively if public inflation expectations deteriorate significantly.