Traders Trim Bets on Further Fed Hikes as Treasury Yields Edge Lower

Deep News
Yesterday

On September 15, 2026, in New York, traders worked on the floor of the New York Stock Exchange. After a sharp selloff the previous week, U.S. Treasury yields drifted slightly lower on Monday as investors awaited the release of the Federal Reserve's latest meeting minutes.

The benchmark 10-year Treasury yield fell more than 1 basis point to 5.255%; the 30-year Treasury yield declined 1 basis point to 5.614%; and the 2-year Treasury yield dropped 2 basis points to 4.797%. Note: 1 basis point equals 0.01%; bond yields and prices move in opposite directions.

Real-time quotes for selected U.S. Treasury maturities: 10-year Treasury: 5.275%, -0.002; 1-month Treasury: 3.953%, +0.01; 1-year Treasury: 4.465%, +0.005; 2-year Treasury: 4.812%, -0.013; 30-year Treasury: 5.63%, unchanged; 3-month Treasury: 4.115%, +0.01; 6-month Treasury: 4.293%, +0.005.

The bond market has endured a wave of selling over the past several weeks; a weaker-than-expected jobs report released last Friday pushed yields lower, easing market concerns about another Federal Reserve rate hike. According to the CME FedWatch tool, traders currently price an approximately 82% probability that the Fed will leave rates unchanged at its next meeting.

On the economic data front, the Institute for Supply Management (ISM) will release its services activity report on Monday; investors are also awaiting the minutes of the Fed's September policy meeting due on Wednesday. Analysts at Deutsche Bank said in a research note: "The bond market is in a highly volatile state, making the upcoming U.S. economic data and Federal Reserve commentary especially critical. This meeting's minutes deserve close attention, to see how the entire committee characterizes the current tightening cycle and its discussion of the neutral rate — in the September Summary of Economic Projections (SEP), members had already raised their estimates of the neutral rate."

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