Treasury yields rally as Fed rate hike expectations cool, while the GBP/USD pair remains locked in a tight trading range above the 1.3200 level.
The US 10-year Treasury yield is experiencing upward pressure as market expectations for an October Federal Reserve interest rate hike have significantly diminished. While the probability of a hike has dropped from two-thirds to one-fifth since late September, the yield environment remains sensitive to shifting monetary policy outlooks.
The probability of an October rate hike has decreased from approximately two-thirds in late September to roughly one-fifth.
The article reports GBP/USD trading in a narrow range with no clear direction, hence neutral.
Market expectations for an October Federal Reserve interest rate hike have plummeted to 20%, down from a 66% probability recorded in late September. Meanwhile, the US 10-Year Treasury yield continues its upward trajectory, signaling sustained bullish momentum in bond yields.
The probability of an interest rate hike in October has fallen sharply from approximately 66% in late September to roughly 20%.
The pair is currently trading in a narrow range above 1.3200, showing little volatility as Monday's trading activity remains contained within Friday's range.