Treasury yields slide after Williams suggests Fed could cut again in December

Group 1 - The yield on the benchmark 10-year Treasury fell more than 4 basis points to trade at 4.059%, with the 2-year Treasury yield down more than 5 basis points at 3.501% and the 30-year Treasury yield down more than 2 basis points at 4.706% [1] - Treasury yields decreased as investors considered the Federal Reserve's interest rate outlook [1] - Fed funds futures traders increased their bets for a December rate cut to over 70% likelihood following comments from New York Federal Reserve President John Williams [3] Group 2 - John Williams indicated that there may be room for a further adjustment in the federal funds rate to move closer to a neutral policy stance [2] - The day before Williams' remarks, money markets were pricing in less than a 40% chance of a rate cut next month, showing a significant shift in expectations [3] - Global markets reacted to a delayed nonfarm payrolls report, which showed job growth exceeded expectations in September, but the unemployment rate rose to 4.4%, the highest since October 2021 [4]