Treasury yields hold steady as investors await Fed rate decision

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U.S. Treasury yields held steady on Wednesday as investors keenly awaited the Federal Reserve’s interest rate decision as well as a batch of economic data.

At 4:19 a.m. ET, the 10-year Treasury yield was little changed at 4.33%. The 2-year yield was down less than a basis point to 3.87%, and the 30-year note was also lower by less than a basis point to yield 4.867%.

The Fed will make its interest rate announcement on Wednesday afternoon, and it’s widely expected to keep interest rates unchanged. Traders are pricing in a nearly 98% likelihood that the central bank will keep its key rate in a range of between 4.25% and 4.5%, according to CME Group’s FedWatch tool.

“In terms of near-term policy, our economists think Powell is unlikely to remove a September rate cut from consideration nor intentionally raise the probability of that outcome,” Deutsche Bank analysts said in a note.

Treasury yields hold steady as investors await Fed rate decision

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