Treasury yields ended October on a mixed note as the latest economic data presented a conflicting picture of the economy. The yield on the 2-year Treasury note rose to 4.86%, while the 10-year Treasury note yield remained relatively unchanged at 4.67%. This divergence reflects investor uncertainty about the future direction of the economy.

Recent economic reports have offered a mixed bag of results. On one hand, inflation remains a concern, with the core consumer price index (CPI) showing persistent upward pressure. This has led some analysts to believe that the Federal Reserve may need to continue raising interest rates to keep inflation in check.

On the other hand, economic growth appears to be slowing. The latest GDP figures showed a deceleration in growth, and housing market activity has cooled significantly. These factors suggest that the Fed may need to pause or even reverse its rate hikes to avoid triggering a recession.

The conflicting signals have made it difficult for investors to predict the future direction of interest rates and the bond market. As a result, bond yields have been volatile in recent weeks, and the yield curve has flattened considerably.

Looking ahead, investors will be closely watching upcoming economic data releases, including the employment report and the next CPI reading. These reports will provide further clues about the health of the economy and the likely path of monetary policy.