On Monday, the benchmark 10-year US Treasury yields increased to their highest over 11 years as investors prepared for the Federal Reserve’s policy decision this Wednesday. It is to be noted that Federal Reserve, in this Wednesday’s meeting, is expected to deliver another large interest rate hike.

On Monday, the 10-year yield, the most significant interest rate benchmark worldwide, surged as much as six basis points (BP) to 3.508 per cent. This is its highest since April 2011.

As the Federal Reserve’s meeting is scheduled to take place on Wednesday, money markets are pricing around an 80 per cent chance of a 75 basis-point (BP) move. Markets also expect a 20 per cent chance of a larger, 100 basis-point rate hike.