U.S. Treasury yields moved higher on Wednesday as the market braced for another interest rate increase from the Federal Reserve. The central bank is widely expected to announce a rate hike at the conclusion of its meeting.

The yield on the benchmark 10-year Treasury note rose to 3.47%. The 2-year Treasury yield, which is more sensitive to near-term interest rate expectations, also increased to 4.25%.

Market participants are analyzing recent economic data, including inflation figures and employment reports, to assess the strength of the economy and the potential impact of further rate hikes. The Fed’s post-meeting statement and press conference will be closely scrutinized for clues about the future trajectory of monetary policy.

Analysts suggest that the market is pricing in a high probability of a 25-basis-point rate hike at this meeting. However, the focus remains on the Fed’s forward guidance and whether it will signal a pause or continued tightening in the months ahead.

Rising Treasury yields can impact various sectors of the economy, including mortgage rates, corporate borrowing costs, and overall financial market conditions.