[10-Year U.S. Treasury Yield Slightly Declines After Cooling September Inflation Data]
10x Research stated that after September inflation data showed signs of cooling, the 10-year U.S. Treasury yield slightly declined. The monthly inflation rate for September dropped to 0.3%, and the annual rate fell to 3%, both lower than expected, strengthening market expectations for the Federal Reserve to ease its policies. The 10-year yield fell below 4.00%, narrowing the spread with the 2-year Treasury yield, and recession concerns have somewhat eased. Scope Ratings downgraded the U.S. credit rating to AA-, briefly pushing yields higher. The government shutdown caused delays in the release of economic data, exacerbating uncertainty and limiting further yield declines. Corporate bond auction demand remains strong.