Investors were looking for clues about what the Fed might do with interest rates in the coming months. US Treasury yields rose on Wednesday as investors waited for the Federal Reserve’s latest decision on interest rates, which was expected later in the day.
The yield on the 10-year US Treasury note rose by more than 2 basis points to 5.0134%, crossing the 5% mark. The 2-year Treasury yield also moved higher, rising by 1 basis point to 4.7494%. Because it influences borrowing costs for mortgages , car loans and credit card debt, CNBC reported, this yield is closely watched.
This yield is more closely linked to expectations about the Federal Reserve’s short-term interest rate decisions.
His comments could provide clues about the central bank’s future plans for interest rates and its view of the US economy, CNBC reported. Investors will watch Fed Chairman Kevin Warsh’s statement after the decision. Investors will look at the Personal Consumption Expenditures (PCE) price index, which is the Federal Reserve’s preferred measure of inflation.
Economic data due on Thursday could provide more clues about inflation.
Traders were pricing in a 76.5% chance of a 25-basis-point rate hike at the central bank’s next meeting on December 9. Investors were also watching for signs of what the Fed might do with interest rates next.
