US yields edge higher as investors weigh Fed rate hike expectations
NEW YORK — U.S. Treasury yields were slightly higher on Tuesday as investors weighed lower oil prices against expectations for further interest rate hikes from the Federal Reserve. The two-year U.S. Treasury yield, which typically moves in step with interest rate expectations for the Fed, hit a fresh two-year high at 4.7879 percent. The Fed last week raised rates for the first time since 2023 to try to control inflation. Traders see a roughly 53 percent chance of another increase when the U.S. central bank next meets in October, according to CME FedWatch. Boston Fed President Susan Collins wrote on LinkedIn on Tuesday that she supported the U.S. central bank's decision last week to raise rates in the face of risks that future inflation will be above the 2 percent target. Oil prices dipped but were off the day's lows. Oil prices have spiked since the start of the US-Israeli war on Iran, fueling concerns about inflation and higher interest rates. Investors also digested comments from President Donald Trump, who told the United Nations that he believed the U.S. would make a deal with Iran
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