Fed's Hammack: There is more restraint that is needed; if monetary pol, 10s -6bp

Mon 12 Oct 2026

Treasuries (close 2026-10-08): 2s 4.75% (-2.0bp), 10s 5.22% (-6.0bp), 30s 5.6% (-7.0bp).

Tape (close 2026-10-08): VIX 14.84, 2s10s +44bp.

Narrative: Trump's 'energy ceasefire' collides with real-world problems of dwindling fuel supplies

What mattered:

• Fed's Hammack: There is more restraint that is needed; if monetary policy does nothing, market conditions would change
• Fed's Hammack: The question for the Fed now is how fast to make policy more restrictive
• Fed’s Hammack calls for quick move to restrictive policy
• Fed’s Hammack backs restrictive policy, says better if it comes ’relatively quickly’
• Fed’s Hammack calls for higher rates as inflation pressures broaden