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Treasury yields climb ahead of Fed meeting despite no Fed funds change

The 10-year yield was about 4.6% as markets priced higher rates even with softer labor and cooler inflation reports.

Reported · Written up by our desk · Central Banks

Treasury yields have jumped sharply ahead of the Fed’s two-day policy meeting, tightening financial conditions even though the Fed funds rate has not yet been changed, according to HousingWire.

HousingWire said the rise reflects markets moving toward a hawkish interpretation of the central bank, despite softer labor prints and a cooler inflation report that, in the article’s view, reduce the case for an immediate rate hike.

The article notes that the 10-year yield was around 4.6% during the morning ahead of the announcement and highlights that past periods when the 10-year stayed below 4% were driven by growth scares rather than Fed policy itself.

It also ties the tone to the political dynamics around Fed Chair Kevin Warsh, referencing remarks by President Trump about Warsh having “a board” that is described as politically constrained and potentially hostile to rate cutting.

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