US bond yields decline ahead of the Fed’s decision

US Treasury bond yields have been declining since the beginning of trading on Wall Street, affected by investors’ attempts in the markets to digest the latest US economic data, in addition to anticipation of the Federal Reserve’s meeting on Wednesday.

Ten-year US Treasury bond yields fell to 4.873%, compared to the last daily close, which recorded 4.895%. US bond yields reached their highest level on Tuesday’s US session, 4.907%, compared to the lowest level, which was recorded at 4.804%.

The Chicago Purchasing Managers’ Index, which measures economic activity in the United States in various sectors, recorded a decline of 44.00 points in October, compared to the previous month’s reading of 44.1 points.

The Labour Department said Tuesday that the Employment Cost Index, which is a measure of the total costs of financial benefits for non-government workers in the United States, rose slightly faster than expected in the third quarter of this year at 1.1%, which was higher than the previous reading of 1.00%.

It is widely expected that the Fed will fix interest rates at its meeting, which will conclude Wednesday, with expectations across financial markets that the Fed will maintain interest rates at their current record high levels for a long period, amid anticipation of whether the central bank’s language will include clear or implicit indications that it has finished raising interest rates and the current quantitative tightening cycle.