Treasurys are getting slammed

US Treasurys are under pressure on Tuesday as the Federal Open Market Committee begins its two-day policy meeting and after some better than expected manufacturing data. Tuesday’s selling has yields up nearly 5 basis points at the long end of the curve, and at their highest levels since the end of May.

Here’s a look at the scoreboard as of 10:06 a.m. ET:

  • 2-year +2.4 bps at 86.5 bps
  • 3-year +3.8 bps at 1.024%
  • 5-year +3.9 bps at 1.346%
  • 7-year +4.5 bps at 1.661%
  • 10-year +4.6 bps at 1.872%
  • 30-year +4.5 bps at 2.623%

Weakness comes ahead of the Fed’s latest policy decision, which is due out on Wednesday. Currently, fed fund futures data compiled by Bloomberg shows a 16.1% probability of a rate hike at Wednesday’s meeting and a 73.1% chance of a rate hike before the end of the year.

Tuesday’s selling has swung the yield curve steeper with the 2-10-year spread widening to more than 100 basis points for the first time since May.

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