10-year yields rise by nearly 4 bps to 1.655%
This could be in part some positioning play ahead of the Fed later today and it is worth taking note. If this runs further, it begs the question of whether or not we might see a 'sell the rumour, buy the fact' play in Treasuries.
As mentioned here, there is limited scope for an extended selloff in Treasuries with the rates market already pricing in ~70% odds of a rate hike by December 2022.
That could prompt such a play as pointed out above, although the big picture view is that the path of least resistance is still for Treasuries to fall i.e. higher yields.
