Treasuries-10-year note hits 19-year high with Fed decision eyed
TLT•Benchmark yields hit multi-year highs
The yield on the benchmark U.S. 10-year Treasury note US10YT=RR rose 4.7 basis points to 5.008% after climbing to 5.041%, its highest since July 19, 2007, and was on track for its sixth advance in the past seven sessions.
The yield on the 30-year bond US30YT=RR added 4.5 basis points to 5.373% after earlier hitting 5.401%, its highest since June 13, 2007.
The two-year US2YT=RR U.S. Treasury yield, which typically moves in step with interest rate expectations for the Fed, gained 2.7 basis points to 4.661% after rising to 4.688%, its highest since July 5, 2024.
Markets price in a higher chance of a Fed hike
Expectations for a rate hike from the Fed have been steadily increasing in recent weeks, with markets now pricing in a 92.7% chance for a hike for at least 25 basis points at the central bank's policy announcement on Wednesday, according to CME FedWatch, up from 59.4% a week ago and 33.1% a month ago.
