US Treasuries Trade Sideways as Fed Officials Signal Diverging Views on Further Rate Hikes

06:14 AM EDT, 10/02/2026 (MT Newswires) -- Treasuries are broadly trading sideways early Friday, while US equity futures are rangebound and oil prices are higher, according to a note from Commerzbank Research. President Donald Trump said Federal Reserve Chair Kevin Warsh should have opposed the hike but didn't blame him, wrote Commerzbank. Fed Dallas President Lorie Logan sees another 50bps of hikes as needed, though higher yields could also slow growth. Fed Vice Chair Philip Jefferson said the Fed's decision "may take more time." Fed Vice Chair for Supervision Michelle Bowman sees no urgency for further hikes this year, while Governor Lisa Cook said supply shocks remain "surprisingly persistent." The US dollar is softer, added Commerzbank. The United States will deploy up to 10,000 additional troops and a third aircraft carrier to the Middle East, while sending more Patriot batteries to protect energy infrastructure in Saudi Arabia and Qatar, said the bank. The US is pressing the European Union to release emergency diesel stockpiles, with Treasury Secretary Bessent saying the country is "doing its part." Germany raised its 2026 gross domestic product growth forecast to 1.3% from 1.0%, and its 2027 forecast to 1.1%, said Commerzbank. Tokyo's consumer price index rose more than expected, added the bank.