Yields fall as hike odds drop to 26%, but credit spreads widen
The odds of an October hike fell to 26% from 70% in one week. High-yield spreads are still tight at about 3.1 percentage points, but they are moving the wrong way.
The Fed hinted that more hikes can wait, so October hike odds dropped and yields fell. The economy is still growing. The number to watch now is credit spreads, which have started to widen.