U.S. Treasury yields ticked higher Wednesday as all eyes were on the Federal Reserve’s interest rate decision expected for later in the day.
At 11:07 a.m. ET, the yield on the 10-year Treasury was up around 5 basis points at 3.691%. The 2-year Treasury yield was last at 3.653% after adding more than 6 basis points.
Yields and prices move in opposite directions. One basis point equals 0.01%.
The focus on Wednesday will be on the Federal Reserve’s latest interest rate decision and outlook for monetary policy. While an interest rate cut is all but guaranteed, traders are divided about the size of the rate reduction.
A 25 basis point cut was widely expected until recent days when investors began pricing in a higher probability of a bigger 50 basis point reduction. Chances of that last stood at 61%, CME Group’s FedWatch Tool showed.
Investors are also hoping for hints about what Fed interest rate policy could look like for the remainder of…
