Bond Market on High Alert as Fed Prepares to Raise Interest Rates

The Federal Reserve's monetary policy meeting on Wednesday is a pivotal moment for the bond market as traders expect a rate hike for the first time since 2023.

According to CME FedWatch, there's a 93% chance of a rate increase, which could either alleviate or exacerbate the ongoing bond market sell-off.

The 10-year Treasury yield rose on Tuesday and briefly touched its highest level since 2007, highlighting the market's sensitivity to the Fed's decision.