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Treasury Yields Climb Ahead Of Federal Reserve’s October Rate Decision

The 10-year Treasury yield rose more than one basis point to 5.11%, while the 30-year yield climbed to 5.448%.

Photo by Connor Gan / Unsplash

US Treasury yields moved higher on Monday as investors assessed persistent inflation concerns, interest rate expectations and geopolitical developments.

The 10-year Treasury yield rose more than one basis point to 5.11%, while the 30-year yield climbed to 5.448%. The two-year yield increased by more than two basis points to 4.757%. Treasury yields influence borrowing costs across the economy, including mortgages, vehicle loans and credit cards.

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Inflation remains a concern after recent data showed wholesale prices rising 6.3% annually in September, the steepest increase since 2022. Consumer prices increased 3.7% over the same period, exceeding forecasts.

Meanwhile, oil prices declined as markets assessed the possibility of additional Russian crude supplies. US West Texas Intermediate fell 0.6% to $100.73 per barrel, while Brent dropped 1.6% to $108.13.

According to CME FedWatch, traders assigned an over 85% probability that the Federal Reserve would hold rates steady on October 28. Housing data is due Tuesday.

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