Recent flight-to-safety demand has driven sharp declines in the 2-year Treasury yield, which fell 18-19 basis points on October 22 to around 4.65% amid AI sector concerns, Middle East tensions, and French market stress—its largest daily drop since August 2025. The yield had traded near 4.96% earlier in October following hotter-than-expected September CPI data and the Fed's September rate hike to a 3.75-4.00% target range. Market-implied odds now assign only about a 7% chance of another hike at the October 27-28 FOMC meeting, with the 2-year trading well above the current funds rate and reflecting expectations for limited further tightening. Key upcoming releases include October 29 GDP and PCE data that could influence December policy expectations.
Experimental AI-generated summary referencing Polymarket data. This is not trading advice and plays no role in how this market resolves. · UpdatedView resolved

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