FX.co ★ Treasury Yields Rise on Wednesday

The yield on the US 10-year Treasury note rose to 4.14% on Wednesday, following a nearly 5 basis point decline in the previous session, as traders evaluated the outlook for monetary policy. On Tuesday, Federal Reserve Chair Jerome Powell provided limited new insights regarding the direction of the federal funds rate—especially concerning the possibility of another rate cut next month—while highlighting ongoing risks within the labor market and inflation. Currently, markets forecast a 94% likelihood of a 25 basis point rate cut at the forthcoming meeting and a 77% likelihood of an additional reduction in December. Focus now shifts to Friday's PCE report for updated inflation data, amid an intense week of Treasury issuances, including today's $70 billion in 5-year notes and Thursday's $44 billion in 7-year notes.