Fresh services and manufacturing sector data out Wednesday stoked concern that the Federal Reserve may have no choice but to raise interest rates one more time before the end of this year, sending 10-year Treasury yields north of 5% for the first time since 2007.
Make no bones about it, because Federal Reserve Chair Kevin Warsh isn't: Inflation is too high. The Fed leader confirmed as much following the central bank's 25-basis-point interest rate increase on Wednesday, September 16.
Guessing what the Federal Reserve is going to do next is an increasingly difficult task. For some time, the war in Iran bolstered the possibility that the central bank would have to raise rates at some point this year to damp inflation.
For the first six months of 2024, the Direxion Daily 7-10 Year Treasury Bull 3X Shares (TYD) was trending lower. That's because he higher-for-longer interest rates narrative was pushing bond prices lower.