US Treasury Yields Moderate and Fed Rate Hike Bets Pare Back Following Dovish Remarks from Fed Governor Waller Ahead of Jobs Report

US Treasury yields have moderated, with the 10-year Treasury note yield easing to around 4.76% after earlier climbing to a 34-month high of 4.818%. This pullback is attributed to dovish comments from Federal Reserve Governor Christopher Waller, who indicated he would support holding interest rates steady later this month if inflation continues to cool. Markets have consequently pared back bets on a September Fed rate hike, with probabilities now around 50%. Investors are now keenly awaiting the August jobs report, due later today, which is expected to significantly influence the Federal Reserve's next monetary policy decision.