US Treasury yield retreated slightly on Wednesday morning federal ReserveMajor monetary policy announcement of
The Federal Open Market Committee will conclude its two-day meeting on Wednesday, and is expected to take aggressive action on interest rates to rein in inflation. The US Consumer Price Index rose 8.6% annually in May, the biggest year-on-year increase since 1981.
Traders were initially looking for a 50-basis-point increase in the interest rate, but in light of the red hot inflation print, the market is now Over 95% opportunity pricing of a 75-basis-point increase, the biggest since 1994, according to CME Group’s Fedwatch tool. (1 basis point equals 0.01%)
Federal Open Market Committee in may Raised the target range for the federal funds rate from 0.75% to 1%, from 0.25% to 0.5%.
On the data front, May retail sales figures are due at 8:30 a.m. ET.
An auction of $30 billion of 119-day Treasury bills will be held on Wednesday.