While the US Federal Reserve implemented a widely anticipated interest rate cut, in his recent press conference, Powell stated that further rate cuts in December are 'not a done deal,' leading to a rise in yields across maturities to their highest level since early June. Two-year Treasury yields rose by 11 basis points. Deteriorating labor market conditions are pushing for lower borrowing costs. On Wednesday, after Federal Reserve Chairman Jerome Powell cast doubt on a December rate cut, US Treasury bonds fell the most in about 5 months, even as a weakening labor market pushed policymakers to reduce borrowing costs.
