Back to the downside
Treasuries had a little bounce into the close last session, but Tuesday turned into the sequel nobody asked for: more selling pressure. That means yields are likely edging higher again, which is the market’s not-so-subtle way of saying, “Yeah, we’re still waiting on the Fed.”
Why you should care
Bond moves don’t live in a vacuum. When Treasury prices fall, yields rise, and that can ripple into everything from bank margins to tech valuations to mortgage rates. In other words, the boring bond market is doing its usual job of being the invisible hand on the steering wheel.
The Fed-shaped cloud
Investors are clearly positioning ahead of the announcement, and that usually means a lot of nervous repositioning, a little second-guessing, and plenty of “maybe we should have waited” energy. If the Fed sounds hawkish, Treasuries could keep sliding; if it surprises dovish, the bond market may finally get a breather.
Big picture: this is classic pre-Fed jitters. The headline may be about Treasuries, but the real story is how the market is trying to price the next move in rates before Powell and crew step up to the mic.