Major US indices edge lower while short-term Treasury yields rise sharply, signaling reduced rate-cut expectations.
US equities traded modestly lower as investors awaited Federal Reserve commentary, with the Dow Jones down 0.17% and the S&P 500 off 0.54%. The NASDAQ declined 0.56%, while the Russell 2000 bucked the trend, gaining 0.23%.
Short-term Treasury yields surged, with the 2-year yield up +9.1 bps to 4.1379%, reflecting a sharp sell-off at the front end. The 5-year yield rose +6.4 bps, while the 10-year yield climbed +2.7 bps. The 30-year yield edged lower by -0.3 bps.
The dollar strengthened broadly, rising against most major currencies. EURUSD fell 0.52%, while GBPUSD declined 0.57%. Commodities saw mixed moves, with gold down 0.90% to $4,288.35 and WTI crude at $75.75.