Markets opened the week on a risk-on tone, as Fed's Waller also favoured a December rate cut, much like Williams had done on Friday. Waller favoured the cut on the basis of a soft and weakening labour market, which pushed US Treasury yields lower and brought market expectations of a cut in December to 75%.
Eurozone sovereign yields fell too, albeit more modestly. German business sentiment fell in November according to the Ifo index, which posted a slight and unexpected drop. Separately, French spreads narrowed after the National Assembly rejected the tax chapter of the budget draft, but PM Lecornu assured approval remains likely on second reading.
European equity indices were mixed, while US equities advanced, particularly tech companies, on hopes of a December rate cut from the Fed. In FX, this also put some downward pressure on the USD, and lifted bitcoin. In commodities, oil prices rebounded as traders monitor Ukraine peace talks.