Treasury yields were lower on Friday after New York Federal Reserve President John Williams offered some hope to investors that the Fed may lower its key interest rate at its final meeting of 2025 next month.
The yield on the benchmark 10-year Treasury
fell more than 4 basis points to trade at 4.063%. Yields across the maturity curve ticked lower, with the 2-year Treasury
yield shedding more than 5 basis points to 3.507% and the longer-term 30-year Treasury
’s yield being down more than 1 basis point at 4.715%.
One basis point equals 0.01% and yields and prices move in opposite directions.
In remarks for a speech in Santiago, Chile, Williams said that he thinks the Fed is able to cut rates again, adding that “modestly restrictive” monetary policy has become “somewhat less so” since the central bank approved cuts at its October and September meetings.
“I still see room for a further adjustment in the near term to the target range for the federal funds rate to move the stance of policy closer to the range of neutral, thereby maintaining the balance between the achievement of our two goals,” he said in remarks for a speech in Santiago, Chile.
Fed funds futures traders increased their bets for a December cut following Williams’ remarks, pricing in a more than 70% likelihood, the CME’s FedWatch tool showed.
Expectations had fallen drastically in recent weeks. In the day prior to Williams’ comments, money markets were pricing in a 39.1% chance of a cut next month.
The Bureau of Labor Statistics on Friday made it even more difficult for the data-dependent Fed to make a decision next month, saying it canceled the release of the October reading for the consumer price index.
Yields had taken a dive earlier Friday following Thursday’s sell-off in U.S. equities, a move spurred by increasing pessimism toward the rate outlook and concerns over valuation levels in the artificial intelligence trade.
Global markets are also digesting Thursday’s delayed nonfarm payrolls report, which showed the economy added more jobs than expected in September, but the unemployment rate also rose to 4.4% — its highest level since Oct. 2021.
Los Angeles Fire Department vessel actively engaged in fire suppression and cooling operations. ONE Henry Hudson was moved approximately one mile from Port of Los Angeles, near Angel’s Gate Lighthouse. November 23, 2025
Trump administration unresponsive after containership fire, Port of Los Angeles chief says
Stop saying ‘don’t cry’—to raise confident, emotionally intelligent kids, use these 5 phrases instead
Americans are holding onto devices longer than ever and it’s costing the economy
A trader works on the floor of the New York Stock Exchange on Aug. 4, 2022.
Dow futures rise 200 points as market attempts rebound into the holiday week: Live updatesMark Zuckerberg, chief executive officer of Meta Platforms Inc., during a dinner with tech leaders in the State Dining Room of the White House in Washington, DC, US, on Thursday, Sept. 4, 2025. US President Donald Trump said he would be imposing tariffs on semiconductor imports “very shortly” but spare goods from companies like Apple Inc. that have pledged to boost their US investments.