Treasury Yields, Dollar Diverge in 3Q

Core Insights - Treasury yields are on track for a third consecutive quarterly decline as markets anticipate a potential U.S. government shutdown [1] - The dollar is expected to end the third quarter higher, despite recent weaknesses [1] - Declining oil prices, influenced by OPEC+ increasing production, are easing inflation concerns, which may be impacting yields and the dollar [1] Interest Rate Expectations - Investors are pricing in 93% odds of a second 25-basis-point interest rate cut by the Federal Reserve this month, an increase from 90% the previous day [2]