U.S. Treasury Yields Mostly Fall Ahead of Likely Fed Rate Hike

US Treasury yields fall across maturities except for the ultralong end, awaiting a likely Fed rate hike on Wednesday. TD Securities analysts expect a 25-basis-point rate hike in September, followed by hikes in October and January. The two-year Treasury yield falls 3.3 basis points to 4.610%, while the 10-year Treasury yield is down one basis point to 4.964%. BNP Paribas remains bearish on US rates, expecting three Fed rate hikes between September 2026 and January 2027. The European Central Bank's monetary policy may consider the upward spiral in bond yields, which is tightening financing conditions for the economy.