Treasury markets retrace October gains after Fed communication

Thursday, October 30, 2025 at 19:00 UTC+01:00 (+0100), United States, New York

News category : Market Structure and Financial Stability Events

Following the Fed press briefing on October 30, the Treasury market moved sharply: earlier month-to-date gains were mostly unwound as yields rose across the curve, particularly at the front end where the odds of additional easing had been priced highest. Traders cited Chair Powell’s emphasis on conditionality and data dependence for the shift; dollar strength and repositioning by funds added to the pressure. The rapid move tested liquidity in some short-dated instruments, and dealers reported wider bid-ask spreads as order books thinned. Fixed-income strategists warned that if data flow remains patchy, volatility could persist until clearer economic indicators re-emerge.

Overall market impact

Strong bearish market impact - strength score : 80/100

Detailed breakdown of market impact over instruments, sectors, and asset classes

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Impacted instruments :

US Treasury bonds

Short-dated interest-rate futures

Treasury ETFs

Fixed-income mutual funds

Swap spreads

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