Federal Reserve Governor Waller said he leans toward keeping rates unchanged if
inflation continues to ease. His remarks pushed U.S. Treasures higher, trimming
yields about 3–5 bps across maturities, led by the two‑year, which is most
sensitive to Fed moves. Markets had been pricing a Fed hike this month; the
two‑year briefly topped 4.40% earlier in the week—its highest since Jan
2025—before falling as much as 7 bps to around 4.30%. The dollar slid up to 0.5%
versus G10 currencies. Mischler Financial Group MD Tom di Galoma said Waller's
comments gave the Treasury market "a breather" and that Waller "appears to be in
the camp" favoring a hold ahead of more inflation data.
