DAILY BRIEF
Fed’s Musalem says tighter monetary policy needed to lower inflation, 10s +1bp · Thu 08 Oct 2026
Treasuries (close 2026-10-07): 2s 4.77% (-2.0bp), 10s 5.28% (+1.0bp), 30s 5.67% (+3.0bp).
Tape (close 2026-10-07): VIX 15.08, 2s10s +51bp.
Narrative: Fed minutes show most policymakers see another rate hike by year end
What mattered:
• Fed’s Musalem says tighter monetary policy needed to lower inflation
• Pentagon draws up new plan for 3 days of Iran strikes - NYT
• Bond yields fall as the Treasury market passes a crucial test of investor confidence
• St. Louis Fed’s Musalem: Why Rates May Need To Rise Again
• Fed’s Musalem says lowering inflation will require more rate hikes