Yields Take Breather as Fed Meeting Looms with Higher Rate Hike Odds

U.S. Treasury yields took a breather on Wednesday after experiencing heavy selling pressure in the previous session.

The 30-year Treasury bond yield dropped to its lowest level since Tuesday, falling by 4 basis points to 5.553%.

This marks a slight recovery for investors who have been concerned about inflation and government debt.

Recent data suggests that high oil prices driven by the Middle East conflict are lifting inflation expectations.

The Federal Reserve's next meeting in October is now priced at a 45% chance of another interest rate hike, according to the CME FedWatch tool.