US yields rise ahead of Fed decision and more AI company earnings
TLT•U.S. Treasury yields rose ahead of the Federal Reserve’s rate decision, with futures showing about a 90% probability of no change and more than 75% probability of a quarter-point hike in December. The 10-year yield was up 3.1 basis points at 5.024%, while Microsoft and Alphabet were due to report earnings after the market close.
1. Yields rise before Fed decision
U.S. Treasury yields rose on Wednesday ahead of the Federal Reserve’s decision, due at 2 p.m. ET. The Fed was expected to hold rates steady after raising them in September for the first time in three years. Rate futures showed about a 90% chance of no change and more than a 75% chance of at least a quarter-point hike in December.
2. Inflation remains in focus
Investors were likely to focus on whether inflation is moderating, with energy prices remaining high and strong AI-industry demand adding to inflation concerns. The September Personal Consumption Expenditures report, the Fed’s preferred inflation gauge, was due Thursday. Oil prices rose after an attack on a refinery in Saudi Arabia.
3. Treasury yields and earnings
The 10-year Treasury yield rose 3.1 basis points to 5.024%, the 30-year yield gained 1.6 basis points to 5.321%, and the two-year yield rose 4.2 basis points to 4.779%. Microsoft and Alphabet were due to report quarterly results after the close, with both expected to report accelerating cloud growth.
