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NY Fed President Williams says the central bank need not rush further rate hikes, as the 30-year Treasury yield hits 5.612%, a fresh 24-year high
What happened
New York Fed President John Williams said in afternoon remarks that the central bank need not rush to continue raising interest rates, the first notable dovish counterpoint from a top Fed official after Governor Lisa Cook's hawkish signal this morning. Stocks perked up on the remarks and the 2-year Treasury yield fell in afternoon trading, though equities remained lower on the day. Meanwhile the bond selloff ground on: the 10-year Treasury ticked higher toward yet another 19-year high and the 30-year yield rose to 5.612%, its highest level since 2002.
Why it matters & what’s next are part of Pro, along with the audio summary.
Start your free 14-day trialWho’s affected
- Rate-sensitive sectors: utilities, REITs, homebuilders — relief if hike expectations ease
- Financials (banks, insurers): hurt by flatter curve if long end stabilizes while short end falls
- S&P 500 / Nasdaq 100: modest relief bid as 2-year yield fell; still lower on the day
- USD: supported by high long-end yields; dollar up 1.5% in September
Sources