The 10-year Treasury yield rose to 4.209%, its highest level since early September, ahead of the Federal Reserve’s rate decision and economic forecasts today.
A 25 basis-points rate cut is widely expected but investors are wary that the Fed could signal that rate cuts from now on could be limited.
TD analysts expect the Fed to signal that further reductions will be dependent on data. However, U.S. rates markets already largely reflect this. Any rise in yields after the decision could therefore be limited and they could soon pull back marginally, the analysts said.
