The 10-year U.S. Treasury yield were calm on Wednesday morning with investors anticipating a big Federal Reserve interest rate decision later in the day…. The 10-year rate crossed the 3% mark on Monday, its highest point since late 2018. The benchmark yield has since eased back, though it remains high. Respondents to the May CNBC Fed Survey expect the U.S. central bank to announce on Wednesday that it will be hiking interest rates by half a percentage point. Nearly three-fifths of respondents also believed that the Fed’s aggressive tightening of monetary policy would end in a recession. The Federal Open Market Committee is due to release its policy decision statement at 2 p.m. on Wednesday, with Fed Chairman Jerome Powell then scheduled to hold a press conference at 2:30 p.m. ET. Sunil Krishnan, head of multi-asset funds at Aviva Investors, told CNBC’s “Squawk Box Europe” on Wednesday that there’s a possibility of four 50-basis-point interest rate hikes over the next four central bank meetings. While the size of these hikes might not seem that small in the context of recent history, Krishnan said “by the standards of longer history, we think it is something the U.S. can manage.”
Source: CNBC – Bonds
