Rates Spark: An eye on risk sentiment

From think.ing.com

Rates are looking at the souring sentiment in stock markets and reacted with a bull steepening with bellies of the curve slightly outperforming. The 10y US Treasury yield remains near 4.1%, comfortably above the 4% threshold it crossed after Fed Chair Powell’s cautious comments about a potential December rate cut at the last FOMC meeting. Nonetheless, the market sees Fed rate-cut chances at the December meeting increasing again, though it is still nearly a 50/50 affair. This followed softer weekly ADP employment data, pointing to a possible downward revision of the October monthly report, which had still shown job ... (full story)