The yield on the US 10-year Treasury note held around 5.13% on Tuesday after climbing in the previous session, as investors assessed the Federal Reserve’s policy outlook ahead of its October 27–28 meeting. Market participants are also awaiting the latest Personal Consumption Expenditures price index, the Fed’s preferred inflation gauge. Markets currently price in an 83% probability that the central bank will leave interest rates unchanged next week, while assigning a 94% chance of a rate hike in December. On Friday, Fed Chair Kevin Warsh refrained from signaling the likely outcome of this month’s FOMC meeting but stated that stronger-than-expected inflation had not changed his assessment of the US economy. Meanwhile, persistently high oil prices continued to fuel inflation concerns, helping sustain upward pressure on bond yields worldwide.