The yield on the US 10-year Treasury note hovered around 5% on Wednesday, holding near its highest level since July 2007, as investors awaited the latest Federal Reserve policy decision. The central bank is widely expected to raise interest rates in an effort to contain inflationary pressures. Futures markets are currently pricing in roughly a 92% probability of a 25-basis-point increase, which would mark the first rate hike in about three years. Market participants are also watching for guidance on the possibility of another increase later this year, with expectations growing for an additional move in October or December. Treasury yields have been further supported by elevated oil prices, which have heightened inflation concerns, as well as by rising fiscal worries in the US. At the same time, Treasury Secretary Scott Bessent told Congress on Tuesday that the US fiscal outlook for 2026 has improved, noting that discussions on fiscal consolidation would follow.