US Treasury yields see biggest monthly decline since 2023
Benchmark 10-year yields dropped as a selloff in technology stocks drove investors toward safe-haven assets.
US Treasuries rose on Friday, with the benchmark 10-year yield recording its largest monthly decline in nearly three years, according to the Economic Times. The 10-year yield fell 36 basis points in October, marking its most significant monthly drop since December 2023.
The rally occurred as the Nasdaq fell more than 2 per cent following earnings reports from Amazon and Intel. Investors expressed concern regarding the costs of AI development, while Intel shares dropped 29 per cent after warning of cash burn this year.
Gennadiy Goldberg, head of US rates strategy at TD Securities in New York, said the last few weeks represented an absolute sentiment shift. He noted that risks have re-emerged after previously being viewed as upside risks to rates.
The 10-year Treasury yield was last at 4.925 per cent. Meanwhile, the 30-year bond yield fell to 5.31 per cent, also set for its largest monthly decline since December 2023, and the two-year yield was at 4.575 per cent.
Regarding monetary policy, Dallas Fed President Lorie Logan stated on Friday that the US central bank requires at least two additional rate hikes to manage inflation. Rate futures currently show a 70 per cent chance of a quarter-point hike in December, according to the CME FedWatch tool.
JoAnne Bianco, partner and senior investment strategist at BondBloxx Investment Management, said the committee remains prepared to tighten further if necessary. She noted that a December hike remains a possibility.
