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US Yields Jump as Fed Dot Plot Boosts Trader Bets on a 2026 Rate Hike

US Yields Jump as Fed Dot Plot Boosts Trader Bets on a 2026 Rate Hike
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US Yields Jump as Fed Dot Plot Boosts Trader Bets on a 2026 Rate Hike US Treasury yields leaped as Federal Reserve officials signaled they expect an interest-rate hike in the coming months, pushing traders to fully price in higher borrowing costs in 2026. Yields on two-year Treasuries, which are particularly sensitive to near-term changes in central bank policy, rose nearly 10 basis points to 4.15% after the decision on Wednesday, the first under Chairman Kevin Warsh. Money markets priced in...

US Yields Jump as Fed Dot Plot Boosts Trader Bets on a 2026 Rate Hike US Treasury yields leaped as Federal Reserve officials signaled they expect an interest-rate hike in the coming months, pushing traders to fully price in higher borrowing costs in 2026. Yields on two-year Treasuries, which are particularly sensitive to near-term changes in central bank policy, rose nearly 10 basis points to 4.15% after the decision on Wednesday, the first under Chairman Kevin Warsh. Money markets priced in 30 basis points of easing by December, compared to around 20 basis points earlier in the session.
US (LOCATION) US Treasury (ORG) Federal Reserve (ORG) Treasuries (ORG) Kevin Warsh (PERSON)
Originally published by Bloomberg Markets Read original →