In October 2023, U.S. long‑term treasury yields rose to 5.57%, marking a 24‑year high. This was driven by concerns over inflation and the expectation that expanding AI investment would boost growth, raising the possibility of higher rates. The Secretary of the Treasury, Janet Yellen, said in the same month that “additional rate increases are needed but should not be forced.” Her remarks eased expectations about a rate hike; after her comments 10‑year treasury yields fell to 5.24%, showing some stabilization yet remaining volatile.
U.S. equity markets declined due to weaker economic indicators and the burden of higher long‑term rates, while the dollar continued strong on relative strength and outlook for higher rates. U.S. 30‑year treasury yields surpassed 5.6% for a record high, easing market anxiety. This movement shows that, with Yellen’s comments, the U.S. economy is showing moderate growth, and the bond market also reflects a trend of easing rate hikes.
In Middle Eastern and major global policy angles, the U.S. maintained its position of “Iran cannot keep nuclear weapons” while announcing Middle Eastern peace talks. Simultaneously it adopted a non‑secretive stance on cooperation with China, easing fears of sharp decline. Iran warned of potential oil sales risks and reaffirmed that the U.S. requires Middle Eastern stability. These foreign policy shifts, together with a rebound in oil exports, become a driver of market volatility.
In terms of rates and investment flows, the U.S. 8‑month volume remained at 708 thousand contracts, lower than the previous month. The sharp drop in consumer confidence index weakened expectations for growth and employment. Investors still show cautious stance while AI-related equity prospects remain high. On the other hand, U.S. bond market and domestic markets reflected Brent oil price falling to $102, echoing concerns about a rate hike. These financial indicators show volatility in dollar exchange rates as well, with market participants focusing on future economic momentum.