FX.co ★ Treasury Yields Edge Lower

On Tuesday, the yield on the US 10-year Treasury note declined to 4.11%, marking its lowest point in approximately a week. This drop occurred as investors shifted towards safer assets, spurred by renewed apprehensions about high valuations in technology and AI stocks, prompting a move away from riskier investments. Additionally, market participants are concerned that upcoming economic data releases, following the government shutdown, might influence the Federal Reserve's stance against further interest rate cuts. Many policymakers have voiced doubts regarding the necessity of additional easing measures. Recent figures from the Labor Department indicated that initial jobless claims reached 232,000 for the week ending October 18, while continuing claims climbed to 1.957 million, the highest level observed since August. Currently, the market estimates approximately a 46% chance of a 25 basis point reduction in the federal funds rate in the coming month.