BOND TRADERS ARE BACKING OFF FED RATE HIKE BETS HERE WHAT IT MEANS FOR MORTGAGE RATES

What happened: Treasurys rallied as stocks slid, with the 10-year Treasury yield on track for its biggest one-day drop in more than two years, slipping back below 5%. Fed rate hike bets faded ahead of the Oct. Why it matters: Mortgage rates tend to follow the 10-year yield, so a sustained bond rally could pull mortgage rates lower in coming days. Bloomberg strategist Simon White argues breakevens are mispricing the oil shock. The next big test is the Fed decision next Wednesday. Coverage: 3 outlets in 24h

Bond traders reducing Fed rate hike bets signals potential mortgage rate impact.

Bond traders reducing Fed rate hike bets signals potential mortgage rate impact. — impact context not separately stored; see What changed.