Fed enters blackout period ahead of October meeting; Treasury market eyes Warsh speech and inflation report

PANews October 12 news: U.S. bond market traders are waiting for the latest CPI data and Federal Reserve Chairman Warsh's remarks to judge how quickly the Federal Reserve will continue raising interest rates next. This month's nonfarm report showed a notable slowdown in job growth, prompting traders to expect the Federal Reserve to keep interest rates unchanged at its next meeting at the end of October, limiting the scale of bond selling.

The market still expects a 25 basis point rate hike in December, followed by two more hikes through the end of 2027. Such market pricing also means that if the September consumer price index rises more than expected, it will increase pressure on the Federal Reserve to accelerate the pace of rate hikes, potentially reigniting bond selling. The Federal Reserve will enter its routine blackout period starting Saturday, and the two-day policy meeting will end on October 28.