Powell Speech Drives Yields to Multi-Week Lows
Yields have reached multi-week lows following a recent speech by Federal Reserve Chair Jerome Powell. Despite concerns over an ongoing trade conflict with China, bond markets displayed resilience over the weekend. By Friday afternoon, both yields and stock markets reacted to the trade tensions, but stocks managed to recoup half their losses by 3 PM.
Impact of Powell’s Speech
On Tuesday, October 14, 2025, after Powell’s speech, the bond market saw a modest uptick in activity. The speech lacked any significant hawkish remarks, potentially stabilizing investor sentiment. The absence of aggressive monetary policy hints might have driven bond yields lower.
Market Movements
- At 9:38 AM: Minor declines were observed with MBS down by 1 tick (0.03) and 10-year yields increasing slightly by 0.2 basis points, reaching 4.036%.
- At 1:11 PM: Market conditions improved with MBS rising by 3 ticks (0.09) and 10-year yields decreasing by 0.2 basis points to sit at 4.031%.
- At 5:10 PM: The day closed with minimal changes. MBS remained up by 3 ticks (0.09), while 10-year treasury yields slipped by 0.4 basis points to 4.029%.
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