Before this month's important economic data and the Federal Reserve rate decision, a number of corporations flooded the market with billions of dollars' worth of debt sales, which caused Treasuries to decline. As oil prices rose and inflation fears increased, stocks declined and the dollar rose to its highest level since March.
Bonds across the curve took a knock, with 10-year yields getting close to 4.3%. In response to the recent spike in US Treasury rates and a seasonal slowdown, at least 40 companies reached out to high-grade markets on Tuesday.
Given recent statistics showing inflation continuing to decline, Fed Governor Waller said policymakers can afford to "go slowly" with tightening. Nothing indicates that we must take immediate action any time soon, Waller said CNBC. The president of the Federal Reserve Bank of Cleveland, Mester, hinted that rates may need to be raised "a bit higher," but she did not specify what officials should do at their subsequent meeting.
Oil strengthened after Saudi and Russia reported they would extend their voluntary oil export cuts until the end of December.