U.S. Treasury Yields Decline in Asian Trade
By Emese Bartha
U.S. Treasury yields declined in Asian trade on Tuesday, staying comfortably below recent multidecade highs, as markets have significantly scaled back expectations of an interest-rate hike by the Federal Reserve this month.
Money markets are pricing in a high 83% probability for the Fed to keep the fed funds target rate range unchanged at 3.75%-4.00% at its next interest-rate decision on Oct. 28, according to LSEG data.
The 10-year Treasury yield fell 1.9 basis points to 5.116%, while the 30-year yield declined 2 basis points to 5.453%, according to Tradeweb.
Recent Fed communication reinforces Deutsche Bank analysts' baseline forecast for a quarterly pace of rate hikes through March, rather than a more accelerated sequence, they said in a note.
"While the September CPI report showed broad-based strength and should keep monetary policy on a tightening trajectory, officials' emphasis on underlying inflation, financial conditions, and deliberate timing suggests broad consensus for proceeding at a measured pace," the analysts said.
Write to Emese Bartha at emese.bartha@wsj.com
(END) Dow Jones Newswires
October 20, 2026 01:52 ET (05:52 GMT)
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