Treasury Yields Resume Upward Trend Following Fed Remarks

US Treasury yields initiated an upward climb at the start of the new trading week, fueled by statements from the Federal Reserve that highlighted a preference for a gradual approach to interest rate cuts in the coming period.

The yield on 10-year US Treasury bonds rose to 4.182%, compared to the previous day’s closing of 4.082%. Yields dipped to their lowest level during the day at 4.080% against a high of 4.182%.

Lorie K. Logan, president of the Federal Reserve Bank of Dallas, stated, “If the economy continues to advance as I currently expect, I believe a gradual strategy of reducing interest rates towards the neutral level could help manage risks and achieve our goals.”

She added that the risks of a US labor market downturn have increased recently, despite employment reports indicating better-than-expected conditions in September, which has raised questions among investors in financial markets about whether the labor market has been strengthening lately.

She further noted that “the US economy is strong and stable, but there are many things that are subject to a great deal of uncertainty regarding the economic outlook.”