The yield on the US 10-year Treasury note inched back above 5% on Wednesday, finding support as investors positioned themselves ahead of the upcoming Federal Reserve policy decision. The central bank is widely expected to keep interest rates unchanged, but traders will be watching closely for any indications of a possible rate hike in December.
Key economic data releases, including figures on GDP growth and the PCE price index, will also be under scrutiny for additional guidance on the future path of monetary policy. At the same time, demand for safe-haven US Treasuries has eased as sentiment toward artificial intelligence has improved. Upcoming earnings reports from major technology companies are anticipated to provide fresh insight into AI-related demand.
The AI sector has been a major driver of US economic growth, even as a recent global sell-off in technology stocks had previously pushed investors toward safer assets such as government bonds.
