The yield on the US 10-year Treasury note was little changed around 4.88% on Tuesday, hovering near a two-month low as investors awaited the October CPI release. Both headline and core inflation are expected to ease amid stabilizing energy prices.
Richmond Fed President Tom Barkin said Monday that the Federal Reserve should adjust monetary policy “with care,” emphasizing that persistent inflation remains its primary concern. Market pricing now implies an 84% probability of a Fed rate hike in December, up from about 74% a week earlier, following stronger-than-expected employment data.
At the same time, inflation worries moderated as oil prices extended their decline, supported by growing optimism over a potential US–Iran peace agreement. President Donald Trump expressed confidence that the conflict in Iran was nearing an end after talks with Qatar’s prime minister.
