September 26, 2022

La Ronge Northerner

Complete Canadian News World

US Treasury yields are falling ahead of the Federal Reserve's main meeting

US Treasury yields are falling ahead of the Federal Reserve’s main meeting

US Treasury yields fell slightly on Wednesday morning before Wednesday Federal ReserveThe main monetary policy announcement.

return on standard 10-year treasury bonds It fell just below 3.41%, after hitting an 11-year high of 3.48% on Tuesday, while the yield on 30 year treasury bonds It fell to 3.3840%. Yields move inversely to prices.

The Federal Open Market Committee will conclude its two-day meeting on Wednesday and is expected to crack down on interest rates in an effort to rein in inflation. The US consumer price index rose 8.6% year-on-year in May, its highest year-over-year rise since 1981.

Traders were initially looking for a 50bp rate hike, but in light of the red-hot inflation print, the market is now Pricing opportunity over 95% 75 basis points The increase, the largest since 1994, according to FedWatch CME Group a tool. (1 basis point equals 0.01%)

Federal Open Market Committee in May Raise the target range for the federal funds rate to 0.75% to 1%, from 0.25% to 0.5%.

On the data front, retail sales numbers for May are due at 8:30 AM ET.

On Wednesday, there will be an auction of 119-day Treasuries worth $30 billion.

More in Europe, the European Central Bank will hold Unscheduled monetary policy meeting On Wednesday, bond yields rose for many governments across the eurozone.

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