Treasury, Eurozone Yields Fall as Oct. Fed Hike Odds Drop to 22%

3 articles · Updated · Yahoo Finance · Oct 6

U.S. and eurozone government bond yields retreated in European trade as investors stepped back into debt after a sharp selloff, with the 10-year Treasury yield down 3 basis points to 5.280%.
LSEG data showed markets now price only a 22% chance of a quarter-point Fed hike on Oct. 28, down from as high as 70% early last week after Friday’s weak U.S. jobs data.
France led the rebound in Europe: the 10-year OAT yield fell 12 basis points to 4.758%, Italy’s 10-year BTP dropped 13 basis points to 4.543%, and the French-German spread narrowed to 131 basis points from nearly 159.
German 10-year Bund yields fell 5.1 basis points to 3.445%, but analysts said borrowing costs remain elevated globally as war-driven energy prices, heavy government spending and debt sustainability worries keep pressure on markets.
RBC said France’s newly passed 2027 budget still leaves a steep fiscal challenge, arguing four more years of similar consolidation would be needed to reach a 3% deficit by 2030.

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Yahoo Finance22h ago

U.S. Treasury, Eurozone Bond Yields Fall as Fed Hike Odds Drop

The Wall Street Journal22h ago

10-Year Treasury Yield Declines as Eurozone Bond Yields Fall - WSJ

Reuters22h ago

Euro bounces as decline in French bond yields cools debt jitters | Reuters

11 Sources

Are global markets severely underestimating the long-term threat of elevated borrowing costs on sovereign debt sustainability despite this temporary drop in yields?

With the ECB pulling back, who will rescue France's soaring debt if the recent bond market stabilization turns out to be a mirage?

Could hidden inflation triggers like AI investments and energy shocks force the Fed to crush this sudden bond rally with unexpected rate hikes?