As the Federal Reserve is about to announce interest rate decisions and economic forecasts, the 10-year US Treasury yield rose to 4.209%, a record high since the beginning of September. The market generally expects the Fed to cut interest rates by 25 basis points, but investors are worried that the Fed may suggest that the room for future interest rate cuts may be limited. TD analysts expect that the Federal Reserve will hint that further interest rate cuts will depend on the data. However, the US interest rate market already reflects this to a large extent. As a result, any increase in yield may be limited and may fall slightly soon after the interest rate decision is announced, these analysts said.

As the Federal Reserve is about to announce interest rate decisions and economic forecasts, the 10-year US Treasury yield rose to 4.209%, a record high since the beginning of September. The market generally expects the Fed to cut interest rates by 25 basis points, but investors are worried that the Fed may suggest that the room for future interest rate cuts may be limited. TD analysts expect that the Federal Reserve will hint that further interest rate cuts will depend on the data. However, the US interest rate market already reflects this to a large extent. As a result, any increase in yield may be limited and may fall slightly soon after the interest rate decision is announced, these analysts said.