US Treasury Yields Fall After New York Fed’s Williams Says One More 2026 Rate Hike May Suffice
JH Kim
Summary
- John Williams, president of the New York Fed, said one additional rate hike could be enough this year.
- After his remarks, the 30-year US Treasury yield fell to 5.565% and the 10-year Treasury yield dropped to 5.219%.
- Longer-dated Treasury prices rose as expectations for further Fed tightening eased.
Forecast Trend Report by Period
US Treasury yields fell after John Williams, president of the Federal Reserve Bank of New York, said one additional rate increase in 2026 could be enough. His remarks prompted buying in longer-dated Treasuries.
On Oct. 13, Williams said one more rate hike in 2026 may be sufficient and that, for now, he does not expect an additional increase in 2027.
The yield on the 30-year Treasury fell 3.42 basis points to 5.565%. The 10-year Treasury yield declined 2.51 basis points to 5.219%.
By contrast, the policy-sensitive two-year Treasury yield was unchanged at 4.795%.
Williams’s comments eased market expectations for further tightening by the Federal Reserve, lifting prices for longer-dated Treasuries.
JH Kim
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