Treasury Yields Cool Down After Fed Hike

Dow Jones
09/17

0855 ET - Treasury yields decline as U.S. labor markets show resilience a day after the Fed's first hike since 2023. Weekly jobless claims decreased to 196,000 from 206,000 and were lower than WSJ consensus of 207,000, showing that layoffs remain contained. Housing starts fall 2.6% in August. The data comes as markets wonder how many more hikes are coming. Odds of another increase in October are priced at 53%, according to CME. "The credibility test for the Fed chief and the Fed appear to have been successfully held in place," Spartan's Peter Cardillo writes. The 10-year yield slips to 4.955% from yesterday's settlement of 5.003%, while the two-year drops to 4.691% from 4.725%.

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