US 10-Year Treasury Yield Rises to 3.63%
The yield on the US 10-year Treasury rose to 3.633%, up from its lowest levels since May 2023, as traders analyzed the latest retail sales data ahead of the Federal Reserve’s decision.
US Retail sales rose 0.1% in August, against expectations of a 0.1% decline. However, sales excluding autos and gas fell short of forecasts.
The data comes as Federal Reserve officials begin a two-day meeting to decide how much to cut interest rates, currently at a two-decade high of 5.25%-5.5%.
The market is already pricing 25 or 50 bps rate cut this September, with the larger reduction aimed at preventing further labor market weakening.
Analysts said the Federal Reserve’s upcoming first interest-rate cut, which is widely expected at Wednesday’s meeting, should support fixed income.
The Federal Reserve is getting ready to cut interest rates this week for the first time in about four years. Presently, the benchmark rate in the US is sitting at 5.5% but expectations point to a cut in the ballpark of 25 basis points to 50 basis points. #US 10-Year Treasury Yield Rises to 3.63%
