The yield on the US 10-year Treasury note was steady at around 5.1% on Wednesday, as investors evaluated the outlook for the Federal Reserve’s policy decision next week. Futures markets indicate roughly an 85% probability that the Fed will keep interest rates unchanged, with about a 75% chance currently assigned to a 25-basis-point hike in December.
Oil prices rose on Wednesday after new missile strikes targeted tankers in the Strait of Hormuz and energy facilities in Saudi Arabia. Meanwhile, housing data released this week showed that elevated mortgage rates are dampening demand. CPI and PPI reports published last week pointed to growing inflationary pressures.
Earlier this month, Treasury yields climbed to multi-decade highs amid a global bond selloff, driven by persistent energy-related inflation, rising government debt burdens, and deteriorating fiscal positions across major economies.
