The yield on the US 10-year Treasury note fell toward 4.9% on Friday, its lowest level in seven weeks, as a broad selloff in global tech and AI-related stocks drove investors into the relative safety of government bonds. Safe-haven demand intensified after disappointing earnings from major technology firms including Alphabet, Amazon, and Intel, which deepened concerns about the sustainability of the AI-driven rally.
On the macroeconomic front, data released Thursday showed the US economy grew at an annualized pace of 3.4% in Q3, beating expectations, supported by solid consumer spending and continued AI-focused investment. Meanwhile, the US PCE price index rose 0.5% in September, its largest monthly increase since March, bolstering expectations that the Federal Reserve may raise interest rates again later this year.
Although the Fed left rates unchanged on Wednesday, futures markets continue to price in roughly a 75% probability of a December rate hike, according to the CME FedWatch Tool.
