Treasury yields moved higher early Wednesday as investors awaited the Federal Reserve's policy decision. Traders price in a 90.6% chance that rates stay unchanged, while expectations for a 25 basis points hike on Dec. 9 stand at 76.5%.
Bond yields moved higher early Wednesday as investors waited for the Federal Reserve's latest monetary policy decision, due later in the session. The 10-year Treasury note yield, the main benchmark for mortgages, auto loans and credit card debt, rose more than 2 basis points to 5.0134%.
Short and long yields edge up
The 2-year Treasury yield, which more closely follows short-term Fed rate decisions, was up 1 basis point at 4.7494%. Meanwhile, the 30-year Treasury yield, which tends to move on geopolitical events, also gained more than 1 basis point to 5.3200%.
Traders expect a hold, but price in a December hike
Traders price in a 90.6% chance that the Federal Open Market Committee leaves interest rates unchanged at 375-400 basis points, according to the CME FedWatch Tool. However, expectations for a 25 basis points hike at the Fed's next meeting on Dec. 9 stand at 76.5%.
Investors will closely watch Fed chairman Kevin Warsh's statement after the decision for signals on future monetary policy projections.
More data arrives Thursday. The personal consumption expenditures index, the Fed's preferred inflation gauge, will land alongside the quarterly GDP growth rate and personal income and spending data.
Source: CNBC
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