Announce US Federal Reserve Today, Wednesday, it announced its decision on interest rates, amid a consensus to raise interest rates by regarding 25 basis points for the first time since the end of 2018.
And US Treasury yields rose yesterday to their highest levels in two and a half years, ahead of the announcement of the first increase in interest rates in more than three years.
The two-year Treasury yield rose to 1.894 percent, the highest level since August 2019.
The benchmark 10-year bond yield jumped to 2.169%, the highest since June 2019.
The spread between the two-year and 10-year bond yields widened by three basis points to 30 basis points.
Despite the expected increase in interest, major US stock indexes closed higher on Tuesday and the Standard & Poor’s ended a three-day downtrend, while another drop in oil prices and a lower-than-expected consumer price reading helped calm investor fears with focus shifting to the Fed’s upcoming policy announcement. At the same time, experts indicate that the market has already calculated raising US interest rates for regarding four times this year.
The Standard & Poor’s 500 index rose 89.55 points, or 2.15%, to close at 4262.66 points, while the Nasdaq Composite Index rose 364.78 points, or 2.90%, to 12,946.00 points. The Dow Jones Industrial Average also increased 611.23 points, or 1.86%, to 33556.47 points.
