U.S. 30-year Treasury yield tops 5.6% as October Fed hike odds fall

  • U.S. stock futures remained subdued ahead of Wednesday’s PCE inflation release.
  • 30-year Treasury yields exceeded 5.6%, while 10-year yields approached 5.3%.
  • Federal Reserve rate-hike odds for October fell to 49% from 71%.

U.S. stock futures showed limited movement Wednesday before the release of Personal Consumption Expenditures (PCE) inflation data, as the 30-year Treasury yield exceeded 5.6% and the 10-year yield approached 5.3%. Expectations for a 25-basis-point Federal Reserve rate increase at the October meeting fell to 49% from 71% at the start of the week, after Federal Reserve Bank of New York President John Williams said there was "no need for urgency" and that policymakers had "time to gather more information." Crude oil stabilized in the mid-$90s per barrel as conflict in Iran entered its seventh month. Markets were also watching Micron and Conagra Brands earnings, global market moves and the final session of September and the third quarter.

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