US Bond Yields Stabilize Below Their High Levels

The yield on the benchmark 10-year Treasury was at 1.49% in the first full trading week of October, below a 3-month high of 1.56% last week, as traders continue to digest the prospects for an early Fed tightening despite ongoing inflationary pressure.

Last week, Fed Chair Powell said at the European Central Bank Forum that supply chain issues could keep inflation running longer than the Fed previously thought.

However, all eyes will be on Friday’s jobs report which will provide an update on the labor market’s recovery.