U.S. Treasury yields edged lower on Wednesday, although the 10-year yield was still hovering around a 16-year high as investors awaited the latest Federal Reserve interest rate decision and guidance on forward policy moves.
At 4:19 a.m. ET, the yield on the 10-year Treasury was down about a basis point to 4.3567%, trading at levels last seen in 2007. The 2-year Treasury was last down more than two basis points at 5.0859%. .
Yield and price have an inverse relationship. A basis point is 0.01%.
Treasuries
| ticker | Company | Yield | change | % conversion |
|---|---|---|---|---|
| US1M | US 1 month Treasury | 5.422% | +0.025 | 0.00% |
| US3M | US 3-month Treasury | 5.506% | +0.029 | 0.00% |
| US6M | US 6-month Treasury | 5.564% | +0.027 | 0.00% |
| US1Y | US 1 Year Treasury | 5.466% | +0.016 | 0.00% |
| US2Y | US 2 Year Treasury | 5.067% | -0.042 | 0.00% |
| US10Y | US 10-year Treasury | 4.343% | -0.024 | 0.00% |
| US30Y | US 30 Year Treasury | 4.415% | -0.013 | 0.00% |
The central bank is set to announce its latest interest rate decision on Wednesday and rates are widely expected to remain unchanged.
However, investors are looking forward to getting fresh insights into the central bank’s policy plans and expectations for the economy as it releases its quarterly outlook for various key economic indicators.
These include interest rates and GDP, inflation and unemployment.
Many investors believe the end of the Fed’s rate hike cycle is near as concerns persist about higher rates dragging the U.S. economy into recession. However, central bank officials have not ruled out the possibility of a higher rate hike.
The central bank began raising rates in March 2022 and has done so in all but one meeting in an effort to reduce inflation and cool the overall economy, including the labor market.
Last week, the latest consumer and producer price index reports suggested that inflationary pressures were continuing, but at moderate levels.
Following the Fed’s rate decision and guidance on the economic outlook, Fed Chair Jerome Powell will hold a press conference.
Elsewhere on Thursday, UK inflation came in at 6.7% on a year-on-year basis, below the 7% forecast by economists polled by Reuters and marking a decline from the previous month. It comes ahead of the Bank of England’s next interest rate decision on Thursday.
