US 10-year Treasury yield eases to 4.78% after five-session rally

  • US 10-year Treasury yields fell after a five-session rally.
  • 4.78% was the yield on Wednesday, versus more than 4.81% during the rally.
  • Markets raised the estimated chance of a Fed hike to nearly 66% from around 40%.

The yield on the US 10-year Treasury note fell to 4.78% on Wednesday, pausing a five-session advance that had lifted it above 4.81%, its highest level since October 2023. A modest decline in oil prices offered some relief on inflation pressures, although elevated Middle East hostilities kept energy prices near six-week highs. Markets are pricing in a nearly 66% chance of a 25-basis-point rate hike by the Fed later this month, up from around 40% last week. The change followed Fed Chair Kevin Warsh’s commitment to fighting inflation in a speech at the Jackson Hole Symposium. Investors are awaiting Friday’s jobs report for further indications of labor-market health, after the ADP report showed another slowdown in private-sector employment growth in August.

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