U.S. Treasury yields climbed on Thursday as investors positioned themselves ahead of the Federal Reserve’s policy meeting next week. Market participants are keenly awaiting insights into the Fed’s outlook on inflation and economic growth, which will likely influence the future path of interest rates. The rise in yields reflects expectations that the Fed may continue its tightening cycle in response to persistent inflationary pressures.

Analysts suggest that the tone of the Fed’s statement will be crucial in determining market sentiment. A hawkish stance could further push yields upward, while a more dovish approach might lead to a pullback. The meeting’s outcome is expected to have a significant impact on various asset classes, including stocks and currencies.