US and European Government Bond Yields Drop Ahead of September CPI Report

Yields on US Treasuries and eurozone government bonds fell Tuesday, supported by lower oil prices and a retreat in AI stocks. The 10-year Treasury yield dropped 5 basis points to 5.193%, according to Tradeweb. Market pricing shows a 19% probability of a Fed rate hike at the October meeting, per LSEG, while 76% of investors expect no change, per Bank of America's survey. Focus turns to Wednesday's US CPI data, with a Wall Street Journal poll forecasting a 3.6% year-over-year increase.