Treasury Yields Rise as Odds of Big Fed Rate Cut Fall
Treasury yields extended gains as markets continue to price a slower pace of interest rate cuts following Friday’s blockbuster jobs report.
On the CME’s FedWatch, odds of no cut in November rose to 13% from zero before the Labor Department said a higher-than-expected 254,000 jobs were created in September. A 25-basis-points cut is still the most expected move for November.
Apollo’s Torsten Slok says in a note the Fed doesn’t need to cut as the economy remains strong. He said rates “will stay higher for longer.” The 10-year yield reclaims the 4% level, at 4.019%, followed closely by the two-year at 4.008%.