US yields edge higher as investors weigh Fed rate hike expectations
NEW YORK — U.S. Treasury yields were slightly higher on Tuesday as investors weighed lower oil prices against expectations for further interest rate hikes from the Federal Reserve. The two-year U.S. Treasury yield, which typically moves in step with interest rate expectations for the Fed, hit a fresh two-year high at 4.7879 percent. The Fed last week raised rates for the first time since 2023 to…
U.S. Treasury yields saw a slight uptick on Tuesday, as investors balanced lower oil prices against the Federal Reserve's anticipated interest rate hikes. The two-year yield, closely tied to Fed expectations, reached a fresh two-year high of 4.7879 percent. The Federal Reserve had previously increased interest rates for the first time since 2023 to curb inflation.
Traders estimate a 53 percent probability of another rate hike at the Fed's next meeting in October, according to CME FedWatch. Boston Fed President Susan Collins endorsed the Fed's decision to raise rates, expressing concern over the possibility of inflation staying above the 2 percent target. Oil prices took a dip but remained above the day's lows, reflecting the impact of the U.S.-Israel war on Iran, which has driven oil costs higher and sparked worries about inflation and rising interest rates.
Investors also considered remarks from former President Donald Trump, who suggested during a UN speech that the U.S. might reach a deal with Iran.
Written by urgent.news from The Korea Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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