Treasury Yields Fall Ahead Of FOMC Decision

Treasury yields keep declining ahead of the Fed’s announcement and as economic data support bets that the fed-fund rate has reached its peak. A hold is widely expected and the odds of another one in December are priced at 79% in the CME’s FedWatch tool, up from 69% a week ago. This could change depending of Chair Powell’s remarks later today. Spartan’s Peter Cardillo expects the rhetoric to remain tough on inflation, but also indicate that if macro data softens ahead of the next meeting a hike could be avoided. “He will be both hawkish and dovish,” Cardillo says. The 10-year yield is at 4.813%, after settling Tuesday at 4.874%