Treasuries fell, pushing yields toward the highest level of the year, as investors anticipate a near-certain rate hike from the Federal Reserve on Wednesday
. Stocks and the dollar traded in tight ranges ahead of a week packed with crucial central bank meetings, economic data releases and political risk.
The S&P 500 Index was virtually unchanged, about one percent below an all-time high, and European equities rose amid a rally in mining shares after they ended last week at the lowest in two months. The yield on 10-year Treasury notes rose past 2.60 percent. The dollar weakened versus most of its major peers, though moves were modest. Oil slipped but held above $48 a barrel in New York. A major winter storm is expected to hit the U.S. east coast early Tuesday.
Global equities are trading near a record high as indications of firming growth in the U.S. and Europe coincide with China’s economy showing signs of improvement. U.S. jobs data at the end of last week cleared the way for the Fed to raise interest rates without forcing it to accelerate the pace for future tightening.
“Markets fully expect a rate rise, so market reaction is likely to be muted unless the Fed disappoints which would lead to lower bond yields and a lower dollar, although that is not our expectation,” Mike Bell, global market strategist at JPMorgan Asset Management, wrote in a note. “All attention is likely to be focused on the press conference to see whether a more hawkish tone is struck, if so yields and the dollar could move higher still.”