Treasuries Rebound as Crude Oil Prices Fall, Inflation Concerns Ease

The New York bond market saw a rebound in long-term Treasuries on the 17th, with the benchmark 10-year Treasury note yield falling to 4.93%, down 0.09 percentage points from the previous day.

The decline was driven by easing inflation concerns, as crude oil futures prices dropped 2.6% to $103 per barrel, reducing expectations of excessive price pressures.

This, in turn, led to a decrease in long-term yields, which are embedded with inflation expectations. The probability that the policy rate will remain unchanged through year-end rose to 13.1%, up from 11.7% the previous day.