Treasury yields are trending lower ahead of the U.S. Federal Reserve’s latest decision on
interest rates.
The yield on the benchmark 10-year Treasury is at 3.536%, down three basis points. At the
same time, the policy-sensitive two-year Treasury declined by two basis points to 3.948%.
Both Treasury notes had reached highs yesterday (September 20), rising to levels last seen in
2011 and 2007 respectively.
The decline in Treasuries comes as the U.S. central bank is expected to announce another
interest rate increase as it strives to lower inflation that is running at a 40-year high in America.
Economists are widely expecting a 75-basis point interest rate hike from the U.S. Federal
Reserve, according to Refinitiv data.
Traders and investors in the U.S. are also bracing for August home sales data that will shed
light on the current state of the American economy.
