Bond yields rose early Wednesday as investors awaited the Federal Reserve’s latest monetary policy decision, expected later in the session.
of 10 year Treasury bill Yields, the main benchmark for mortgages, auto loans and credit card debt, rose more than 2 basis points to 5.0134%.
yield of 2 years treasury The note, which more closely follows the Federal Reserve’s short-term interest rate decisions, rose 1 basis point to 4.7494%.
On the other hand, long-term bond yields are 30 year US bond It also rose more than 1 basis point to 5.3200%, although it tends to fluctuate depending on geopolitical events.
One basis point is equal to 0.01%, or one-hundredth of 1%, and yield and price are inversely proportional to each other.
The move comes as traders are pricing in a 90.6% chance that the Federal Open Market Committee, which sets interest rates, will keep rates unchanged at 375 to 400 basis points, according to the CME FedWatch tool.
Investors will be watching Fed Chairman Kevin Warsh’s statement after the decision for any signals on the outlook for monetary policy. Expectations for a 25 basis point rate hike at the Fed’s next meeting on December 9th are currently at 76.5%.
Further economic data is expected to be released on Thursday. The Federal Reserve’s preferred measure of inflation, the Personal Consumption Expenditure Index, as well as quarterly GDP growth, personal income and spending data, will provide investors with further insight into the domestic economy and inflation situation.
