Bond traders sold off a record 1.5 trillion rupees of Treasuries this week, sending the 10‑year yield to a 5.02% high— the steepest since 2007—a 0.5‑point climb that has dented equity risk appetite.
Crypto markets followed suit; Bitcoin slipped below $76,000 after the Senate stalled the Clarity Act, dragging crypto‑focused stocks down 3.4% in pre‑market trading—an echo of the broader sell‑off.
Fed pricing sits at a 92.5% chance of a 25‑basis‑point hike, per the CME FedWatch tool, even as the central bank’s policy statement reiterated that inflation remains at 3.4% YoY—well above the 2% target.
Equities reflected this uncertainty: the S&P 500 futures nudged 0.2% higher, Nasdaq‑100 futures climbed 0.4%, while oil futures traded just above the $100 mark, with Brent at $107.92 and WTI at $104.55.
Markets will pivot on the FOMC’s decision at 2 pm ET, followed by the dot‑plot and inflation projections—any surprise could tilt the short‑term trend in either direction.