Stocks Higher As Treasury Yields, Dollar Rise Amid Fed Rate Bets
Updated at 9:07 am EST
U.S. equity futures edged higher Tuesday, while the dollar held onto gains against its global peers and Treasury yields pierced multi-year peaks, as investors braced for another volatile session ahead of the Federal Reserve’s policy decision later on Wednesday.
Benchmark 10-year note yields traded north of 3% for the first time since December 2018 late Monday, and scaled that peak again in the overnight session — pulling 10-year German bunds past 1% for the first time since 2015 — as markets around the world recalibrate asset prices in face of hawkish central bank signaling and the fastest inflation readings since the 1980s.
The CME Group’s FedWatch is pricing in a 99.8% chance of a 50 basis point hike on Wednesday, as well as a 95.6% chance of a 75 basis point move at the Fed’s following meeting in June, although 10-year note yields eased to 9.6% in early New York trading.
“The window for the Fed to engineer a…
