10-Year Yields Ease from 5.34 Percent Peak While S&P Futures Advance on Tech Strength
Bond markets registered persistent selling into elevated fiscal deficits while equities selectively priced AI narratives. The divergence sets up tests from upcoming labor and manufacturing data ahead of the November payrolls release.
The 10-year note spiked to 5.34 percent before settling near 5.27 percent amid ongoing fiscal supply pressure and resilient growth data. Equity markets decoupled from this tightening, with Nasdaq 100 futures up 0.7 percent as Micron's forecast reinforced AI spending expectations while the Russell 2000 lagged due to exposure to higher borrowing costs among its 40 percent unprofitable constituents.
FOMC: The December dot plot will show no more than two 25bp cuts priced for 2025 if December core PCE prints above 2.7 percent.
Sources (3)
- [1]US Treasury Daily Yield Curve(https://home.treasury.gov/resource-center/data-chart-center/interest-rates/TextView?type=daily_treasury_yield_curve)
- [2]JPMorgan Equity Strategy Note(https://www.jpmorgan.com/insights/research)
- [3]Bureau of Labor Statistics ADP Employment Report(https://www.bls.gov)