US Treasury yields slide back ahead of major Fed meeting

US Treasury yield retreated slightly on Wednesday morning federal ReserveMajor monetary policy announcement of

Yield on Benchmark 10 year treasury note Yield fell slightly below 3.41%, reaching an 11-year high of 3.48% on Tuesday. 30 Year Treasury Bond fell to 3.3840%. Yields move inversely to prices.

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.

in Europe, European Central Bank will catch one unscheduled monetary policy meeting On Wednesday, with bond yields rising for several governments in the euro area.