FX.co ★ US 10-Year Yield Falls to 1-Month Low

The yield on the 10-year U.S. Treasury note dropped to 4.05% on Monday, marking the lowest point in nearly a month. This decrease followed dovish comments from key officials of the Federal Open Market Committee (FOMC) that bolstered expectations for a potential 25 basis point rate cut by the Federal Reserve next month. FOMC Governor Waller, a leading candidate to become the next Fed Chairman, reaffirmed his support for a rate cut in December, citing concerns about the weakening labor market. His comments aligned with similar signals from New York Fed President Williams the previous week. The U.S. central bank faces a rate decision with limited recent data due to the government shutdown, as reports on inflation and employment following September will only be available after the Fed's decision. The latest available surveys indicate deteriorating labor conditions, with jobless claims reaching a four-year high. However, Purchasing Managers' Indices (PMIs) suggest a rise in inflation, providing ammunition for the hawks within the FOMC.