The U.S. 10-year Treasury yield rose again on Wednesday as traders digested the latest comments from Federal Reserve officials on the trajectory of interest rate cuts.
At 5:34 a.m. E.T. on Wednesday, the yield on the 10-year Treasury stood at 4.23%, up roughly 3 basis points, to reach levels not seen since late July. The benchmark rate soared 12 basis points on Monday and broke above 4.2% on Tuesday.
Meanwhile, the yield on the 2-year Treasury stood at 4.050%, up 1 basis point. Yields and prices move in opposite directions. One basis point equals 0.01%.
Higher Treasury yields are putting pressure on equities, with U.S. stock futures falling, the declines coming after the S&P 500 posted its first back-to-back loss since early September.
Treasurys
Robust economic data and deficit worries are among the factors behind the rise in the 10-year Treasury yield — despite a half-point rate cut from the Federal Reserve in September.
Traders have become concerned that the central bank may be less inclined to reduce rates, even as the Fed had forecast another half-point worth of cuts before the year ends.
It’s been a busy week for Fed commentary, with an array of policymakers delivering speeches earlier this week.
Investors will be keeping an eye on the latest comments from Fed officials on Wednesday as Fed Governor Michelle Bowman speaks at the 8th Annual Fintech Conference in Philadelphia while Richmond Fed President Thomas Barkin will address the Virginia Education and Workforce Conference.
The Fed’s Beige Book, a review of economic conditions across its 12 districts, is also set to be published Wednesday.