Waller Comments And Yen Rally Ease Pressure On Stocks, Treasurys

According to CNBC, stock futures rose on Thursday even as Brent crude briefly topped $97 per barrel for the first time since late July, West Texas Intermediate futures climbed more than 1% above $92, and Treasury yields fell after Federal Reserve Governor Christopher Waller said he would support keeping the overnight rate in a range of 3.5%-3.75%. Waller said recent data suggest disinflation is starting to emerge and that he would back holding the federal funds rate at its current level if that trend continues over the next two weeks. The 10-year Treasury yield fell 6 basis points to around 4.74% after earlier touching a 2023 high above 4.81%, while the 30-year bond yield dropped 4 basis points to 5.221%. The CME Group's FedWatch tool showed a 52.6% chance of a rate increase at the Fed's Sept. 15-16 meeting, down from 63% on Wednesday. Separately, the Japanese yen rallied nearly 2% against the dollar to 155.68 after a Bank of Japan official said the central bank could raise rates to defend the currency's sharp decline.