Treasury Yields Dive as Powell Signals Possible Pause in Rate Hikes Soon
• US Treasury yields plunged after comments from Fed Chair Jerome Powell suggested the central bank may be done hiking rates soon • Manufacturing data showed continued contraction, underscoring economic fragility • Market is pricing in a 66% chance of a Fed rate cut in March 2023 • The 10-year Treasury yield fell 13 basis points to 4.261%, extending a sharp decline in recent weeks • An indicator of economic expectations, the 2s10s yield curve, was at -34.4 basis points, its shallowest inversion since November 8