* Fed hike odds for next week's meeting ease to 17.2%, CME FedWatch shows
NEW YORK, Oct 20 (Reuters) - Longer-dated US Treasury yields declined on Tuesday, but were well off their earlier lows in choppy trading as US equities rallied, in part due to a reversal in AI stocks as investors engaged in some dip-buying.
Yields dropped last week as a tumble in AI infrastructure stocks over concerns that investments could dry up due to higher borrowing costs sparked safe-haven demand for Treasuries.
As losses in AI stocks such as CoreWeave were erased and the broader equity market rallied, yields on Tuesday moved off their earlier lows, with shorter-duration yields higher on the day.
"The market is caught in a lot of cross-currents, and the bigger fundamental picture that's driven rates higher is the firm growth, the high inflation, and the notion that the Fed and the other world central banks, they're coming for it, and so that's pushed yields up," said Robert Tipp, chief investment strategist and head of global bonds at PGIM in Newark, New Jersey.