Treasury yields tick higher as traders anticipate the Fed’s next move

Treasury yields ticked higher early Monday as traders anticipate the U.S. Federal Reserve’s next moves in the face of persistently high inflation.The yield on the 2-year Treasury bond rose 7 basis points to trade at 3.93% at 6:41 a.m. ET, trading around levels not seen since 2007. The yield on the 10-year Treasury, meanwhile, gained nearly 5 basis points to 3.494%. Yields move opposite to prices. One basis point is equivalent to 0.01%.The Fed’s two-day meeting is due to begin Tuesday, with most market participants expecting another 75-basis-point hike by the central bank. Some analysts have, however, argued the Fed could increase interest rates by a full point, or 100 basis points.It comes after inflation rose more than expected in August. The consumer price index increased 0.1% for the month and 8.3% over the past year — higher than economists expected. The data has led investors to expect the Fed to double down on higher interest rates for longer, until prices fall.— CNBC’s Jeff Cox and Jesse Pound contributed to this report

Leave a Comment

Your email address will not be published.