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US yields drift higher as markets see possible hawkish Fed
U.S. Treasury yields advanced on Tuesday, as a stable economy and generally positive data overall have reduced the chances of recession and raised the possibility of two more interest rate hikes this year. The Federal Reserve is widely anticipated to lift interest rates by 25 basis points (bps) on Wednesday to a target range of between 5.25% to 5.50%. The U.S. rate futures market sees Wednesday's rate increase as probably the last for the year and the Fed is seen on hold until May 2024. But the chances of another rate increase in November has grown to about 33%, from about 26% a week ago, according to the CME's ... (full story)