US 10-Year Treasury Yields See Largest Weekly Drop in Year

US 10-year Treasury yields are recording their largest weekly decline in over a year, ending the period at 5.087 per cent. Yields remained volatile throughout the week, fluctuating between 5.037 per cent and 5.329 per cent as investors sought safety amid equity market instability and concerns over the debt levels of artificial intelligence companies.

Kevin Warsh, Chairman of the Federal Reserve, addressed the market conditions during the IMF-World Bank annual meetings in Bangkok. While he declined to prejudge future rate decisions, he noted that the September hike demonstrated the bank's commitment to price stability.

Market participants are currently pricing in an 83 per cent probability that the Federal Reserve will hold interest rates steady at its October 27-28 meeting. However, expectations for future tightening remain high, with investors seeing an 88 per cent chance of a rate hike in December.