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10-year Treasury yield above 5% as investors await Fed decision
CNBC • • general
Key Points:
- Yields on U.S. Treasurys remained largely unchanged Wednesday morning as investors awaited the Federal Reserve's monetary policy decision from its two-day September meeting.
- The 10-year Treasury yield held steady at 5.004%, with 20- and 30-year yields also unchanged, while Fed funds futures indicated a 92.5% probability of a quarter-point rate hike.
- Recent data showed U.S. inflation remains elevated, with an annual rate of 3.4% in August and the Fed's preferred PCE price index up 3.7% in July, compounded by oil prices staying above $100 per barrel.
- Market experts noted that a decision by the Fed to hold rates steady could surprise investors, potentially harming market sentiment and the Fed’s credibility amid political pressure to keep rates low.
- Analysts highlighted that the Fed is entering a new phase of monetary policy, shifting from expectations of rate cuts earlier this year to a focus on combating supply-driven inflation amid challenging global market conditions.
