The Federal Reserve's interest rate decision will be announced this Wednesday, and U.S. Treasury yields are collectively rising ahead of it. The 30-year yield hit a new high since September, while the 2-year yield reached its highest level in nearly three weeks. The market expects the Fed to cut rates by 25 basis points for the third consecutive time this week, but expectations for rate cuts in 2026 have been significantly lowered. Currently, bets are on only two additional rate cuts next year (each by 25 basis points), which is about 5 basis points less than last week's forecast. A month ago, the market was expecting more than three rate cuts. This rate cut by the Fed may come with a hawkish tone, potentially extending the rate stabilization period. The final level at which easing stops could be higher than the market previously anticipated. The core reasons are that inflation remains elevated and the economy continues to grow.