The US 10-year Treasury yield slipped 5 bps to 5.19% on Tuesday, easing from the 24-year highs reached earlier this month, as traders returned from the long weekend amid rising safe-haven demand and weaker oil prices. A broad selloff in the technology sector—especially among semiconductor and chipmakers—on renewed doubts about the AI-driven rally weighed on risk sentiment globally and pushed investors toward safer assets. At the same time, crude prices declined after a three-session advance, adding further support to the bond market.
Market participants are now focused on key US inflation releases this week, including Wednesday’s CPI report, for clearer signals on the inflation outlook and the Federal Reserve’s next policy moves. Traders have pared expectations of another 25 bps rate hike at this month’s meeting, with the implied probability now around 19%. For December, futures markets are pricing in nearly a 72% chance of a 25 bps increase in the federal funds rate.