© Reuters
By Yasin Ebrahim
Investing.com — The U.S. 10-year Treasury yield on Tuesday jumped to its highest level in 11 years as bets on the Federal Reserve turning more aggressive heat up ahead of the central bank’s policy decision on Wednesday.
The topped 3.45% for the first time since April 2011.
Ahead of the Fed’s two-day meeting set to get underway Tuesday, investors have upped their bets on the central bank hiking its benchmark rate by 0.75%. That is above economists’ forecasts for 0.5%.
About 94% of the traders expect the Fed to deliver a 0.75% hike on Wednesday, a sharp increase from the 6.9% seen in the prior week, according to Investing.com’s .
The bets on a more aggressive hike followed an upside surprise in the May inflation data released last week.
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