US Market: Treasury yields face pressure despite expected Fed rate pause

What happened: US government bonds rebounded after a selloff pushed yields higher for nearly two months from August, partly on concerns over financing challenges in parts of the AI infrastructure sector. Key numbers: 10-year Treasury yield up 84 basis points this year, biggest annual increase since 2022. 30-year yields up nearly 50 basis points in 2026, largest since 2024. Why it matters: Investors expect the Fed to hold rates steady Wednesday but price a possible December increase. Analysts say inflation, heavy borrowing and AI investment sentiment may matter more than the Fed decision.

US government bonds rebounded after a selloff pushed yields higher for nearly two months from August, partly on concerns over financing challenges in parts of the AI infrastructure sector.

Investors expect the Fed to hold rates steady Wednesday but price a possible December increase. Analysts say inflation, heavy borrowing and AI investment sentiment may matter more than the Fed decision.