The yield on the 10-year bond fell slightly below 3.41%, having reached a high of 11 years at 3.48% on Tuesday, while the yield on the 30-year bond fell to 3.3840%. Yields are moving in the opposite direction to prices. The Federal Open Market Committee will conclude its two-day meeting on Wednesday and is expected to crack down on interest rates in a bid to curb inflation. The US consumer price index rose 8.6% year on year in May, its highest annual rise since 1981. Traders were initially looking to raise interest rates by 50 basis points, but in the light of red inflation, the market is now pricing more than a 95% chance of rising 75 basis points, the highest since 1994, according to the CME Group FedWatch . (1 base unit equals 0.01%) The Federal Open Market Committee in May increased the target range for the federal interest rate from 0.75% to 1%, from 0.25% to 0.5%. In terms of data, data for May retail sales are expected at 8:30 a.m. ET. An auction of $ 30 billion in 119-day Treasury bills will take place on Wednesday. In Europe, the European Central Bank will hold an unscheduled monetary policy meeting on Wednesday, with bond yields rising for many governments across the eurozone.
