On Monday, yields on U.S. Treasurys fell, with the 10-year yield dropping more than 2 basis points to 5.0729% and the 30-year yield also down 2 basis points to 5.4122%. The 2-year Treasury note yield remained stable at 4.7273%.
These declines occurred despite recent inflation data showing a significant annual rise in wholesale prices of 6.3%, the highest since 2022, and a 3.7% increase in consumer costs for September, surpassing expectations. Additionally, energy prices fell, with U.S. West Texas Intermediate crude down 2.05% to $99.33 per barrel and Brent crude down 2.65% to $106.99.
As the Federal Reserve's next interest rate decision approaches on October 28, traders are anticipating an over 85% likelihood that rates will remain unchanged. Key economic indicators, including housing starts and new building permits, are set to be released this week, which could further influence market sentiment