U.S. Treasury yields rise in midday European trade as investors turn cautious about prospects for U.S. interest-rate cuts, even as the Federal Reserve is widely expected to reduce rates on Wednesday.
The 30-year Treasury yield rises to a three-month high of 4.811%, LSEG data show. Money markets price a 86% probability of a 25-basis point rate cut this week, according to LSEG, but investors are concerned that the Fed could be cautious about the outlook. Fed Chair Jerome Powell’s accompanying comments could affect sentiment, Naga’s Frank Walbaum says in a note.
The two-year Tresaury yield rises 1.1 basis points to 3.574%, while the 10-year yield rises 1.2 basis points to 4.150%, according to Tradeweb.
