It’s headlines like this that are suddenly everywhere and they certainly capture the market mood today.
US 10-year yields are down 15.5 bps to 4.636% today, which is certainly a long ways off from 5% just over a week ago.
US 10 year yields daily
The drop in Treasury yields isn’t just about a repricing of the term premium as the market grows less fearful about a hawkish Fed. Pricing for December 2024 rate cuts are now up to 85 from 75 bps late last week.
That (and strong risk appetite) are weighing on the US dollar, which is trading at session lows across the board.