Bond Bombshell: Powell’s Dovish Tone Sends Treasury Yields Plunging – 2-Year Notes at 2022 Lows
Fed’s Dovish Signal Drives Rally After Fed Chair Jerome Powell’s Oct 14 speech to business economists in Philadelphia, U.S. bond markets surged. Powell confirmed the Fed’s intent to proceed “meeting-by-meeting” with policy cuts and suggested the central bank may halt its $40 billion/month balance-sheet runoff soon reuters.com swissinfo.ch. His message – a familiar but balanced tone – calmed traders. 10-year Treasury yields plunged from about 4.1% into the low 4.0% range reuters.com swissinfo.ch, while 2-year yields dropped even more on expectations of aggressive rate easing. Economists note that Powell emphasized weak hiring, not inflation, as a growing risk. He said layoffs