The yield on the US 10-year Treasury note rose to 4.7% on Monday, rebounding from an 8bps fall on Friday, as traders continue to assess the monetary policy outlook and the impact of the Israel-Hamas war. Market participants will closely monitor comments from several Fed officials this week, including an appearance by Fed Chair Powell before the Economic Club of New York on Thursday, for further insights into the central bank’s next steps. On Friday, Philadelphia Federal Reserve President Harker said he would favor holding interest rates at the current level. Last week, the FOMC minutes revealed that policymakers are inclined to keep interest rates elevated for an extended period, with the next moves being uncertain and contingent on economic data. Recent data also indicated that both consumer and producer inflation exceeded expectations in September, while the labor market remained tight.
