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Fed Hikes Rates as 10-Year Yield Drops Below 5 Percent

By Markets Desk · 2026-09-18 · Updated 2026-09-18 07:35 UTC
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Illustration: Tradingbird

The Fed, under new Chair Kevin Warsh, hiked rates by 25 basis points, pushing the benchmark to 3.75%-4.00%, while the 10-year yield dipped below 5 percent. Market signals, including futures data and a post-hike stock market rally, indicate that investors view this move as the start of a sustained rate-hiking cycle rather than a one-off adjustment.

  • According to The Motley Fool, futures markets are pricing in an 87% probability of another hike this year, while the 2-year Treasury yield suggests investors expect three additional quarter-point increases; notably, the S&P 500 rallied 1.1% on the relief that the Fed is firmly committed to fighting inflation.

    Source: The Motley Fool

  • The US Federal Reserve raised its benchmark rate by 25 basis points. The 10-year Treasury yield fell to 4.94 percent.

    Source: South China Morning Post
Based on reporting by South China Morning Post and The Motley Fool, compiled by the Tradingbird desk.

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