What’s happening What’s driving markets Lingering concerns that the Federal Reserve will raise interest rates further, and keep them elevated for longer — following last week’s Federal Reserve projections and recent hawkish chatter from officials — pushed the 10-year Treasury yield to a fresh 16-year high near 4.57% early Tuesday.
Traders are looking ahead to the Fed’s favored inflation gauge, the core PCE price index, which will be published on Friday. The chances of a 25 basis point rate hike to a range of 5.50 to 5.75% at the subsequent meeting in December is priced at 35%. U.S. economic updates set for release on Tuesday include the S&P Case-Shiller home price index for July, released at 9 a.m. Eastern, followed at 10 a.m. by August new home sales and September consumer confidence.