U.S. Treasury Yields Dip Following Daly’s Comments

U.S. Treasury yields have been on a downward trajectory, influenced by a combination of domestic economic data and recent statements from Federal Reserve officials, notably those suggesting a more aggressive pace of interest rate cuts in the coming period.

The yield on the 10-year Treasury note declined to 4.032%, compared to the previous day’s close of 4.105%. Yields on this type of security reached a high of 4.106% and a low of 4.029% during the trading session.

The New York Empire State Manufacturing Index fell to a five-month low of -23.6 in October, compared to the previous reading of -11.0. This figure came in below market expectations of -3.6.

The weak data has dampened market sentiment, as the index has remained in negative territory for several consecutive months, highlighting a significant deterioration in this crucial sector of the U.S. economy.

Mary Daly, president of the Federal Reserve Bank of San Francisco, indicated that the central bank still has room for further interest rate cuts in the near future.

Daly stated, “We are still a long way from where we need to be, so the decisions we make now are about the pace of change in interest rates until we reach the desired levels. However, it is possible that we may reach a neutral interest rate that could be higher than the rate we have already reached.”