Get 40% Off
⚠ Earnings Alert! Which stocks are poised to surge?
See the stocks on our ProPicks radar. These strategies gained 19.7% year-to-date.
Unlock full list

Fed and Wall Street See Potential End to Interest Rate Hikes Amid Rising Treasury Yields

EditorVenkatesh Jartarkar
Published 10/11/2023, 12:14 PM
Updated 10/11/2023, 12:14 PM

The Federal Reserve and Wall Street have projected that a surge in long-term Treasury yields, the highest since 2007, could bring an end to 19 months of historic interest rate hikes. As per the CME FedWatch Tool, financial markets predict a 90% likelihood of rate stability at the upcoming policy meeting scheduled from October 31 to November 1, indicating a decreased chance of another rate hike in November.

The rise in 10-year Treasury yields is leading to increased costs for car loans, credit card rates, student debt, and mortgage rates, which in turn is negatively affecting home affordability. This development has sparked a surge in consumer anxiety over the possibility of missing minimum debt payments, as indicated by data from the New York Federal Reserve.

Looking ahead, most traders anticipate no further hikes, with interest rates expected to remain steady until June 2024 before any policy easing occurs. This forecast aligns with the prevailing sentiment that the escalation in long-term Treasury yields could mark the end of the recent cycle of interest rate increases.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.