NEW YORK
New York Federal Reserve President John Williams signaled that the central bank may need only one additional rate hike in 2026 and no increases in 2027, a shift that prompted U.S. Treasury yields to decline across longer maturities.
Williams, who holds a permanent voting seat on the Federal Open Market Committee, carries outsized influence over market expectations. His remarks are closely watched as potential signals of internal Fed consensus on the inflation-fighting campaign.
The 30-year Treasury yield fell to 5.565 percent, down 3.42 basis points. The 10-year Treasury yield dropped to 5.219 percent, a decline of 2.51 basis points. The 2-year yield held steady at 4.795 percent.
The steeper decline in longer-dated bonds reflects market repricing around reduced expectations for aggressive tightening. Traders interpret fewer rate hikes as a signal that the Fed believes current policy levels are approaching the restriction needed to bring inflation toward its 2 percent target while supporting employment.
