U.S. 10-year Treasury yield near flat as investors focus on Fed and AI company news
TLT•The 10-year Treasury yield was unchanged at 4.988% on Monday as investors awaited the Federal Reserve’s decision and earnings from major AI companies. Futures priced in about a 90% chance of rates holding this week and an 80% chance of a hike in December.
1. Fed decision in focus
The benchmark 10-year Treasury yield was little changed on Monday as investors awaited potential interest-rate guidance from the Federal Reserve and earnings reports from major AI companies. The Fed is widely expected to leave rates unchanged on Wednesday; rate futures priced in about a 90% chance of a hold this week and roughly an 80% chance of some type of hike in December.
2. Yields and AI spending
The 10-year yield was last unchanged at 4.988%, while the 30-year yield fell 1.5 basis points to 5.3%. The two-year yield rose 3.2 basis points to 4.714% after soft demand at an auction of two-year Treasury notes. Investors are also watching earnings from Microsoft, Alphabet and Amazon for comments on AI spending and the economic outlook. Meta Platforms said it plans to raise up to $95 billion in equity to fund AI-related expansion.
