US Treasury yields are approaching the 5% threshold, driven by persistent inflation concerns and rising debt levels. The probability of the Federal Reserve maintaining a pause in monetary policy at the September 15-16 FOMC meeting has dropped from 46% to 38% within 24 hours, signaling a potential shift toward tighter conditions. Upcoming CPI data remains a critical factor that could influence the Fed’s decision. This rise in yields directly impacts borrowing costs, particularly for mortgages and auto loans.
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