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.
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