US Treasury yields retreat from 2002 highs as Fed signals patience on rates

US Treasury yields fell from multi-year highs, with the 30-year bond dropping 4 basis points to 5.553% after hitting its highest level since 2002. The 10-year yield declined 3 basis points to 5.221%, while the 2-year note slipped 1 basis point to 4.876%. The pullback follows comments from New York Fed President John Williams, who said there is "no need to rush" and time to gather more information before the October Fed meeting. Recent upward pressure on yields reflects expectations of future Fed rate decisions, as high oil prices raise inflation risks. Traders now price a 45% chance of another rate hike, with the PCE price index expected to show 0.3% monthly and 3.7% annual growth. On September 29, the 10-year yield held at 5.238% after reaching multi-year peaks, while the 30-year fell 1 basis point to 5.551% and the 2-year rose to 4.9389%. The previous day saw borrowing costs surge sharply, with 10-year and 3-year yields jumping 5 basis points.