Rising US Treasury yields weighed on US stock futures as the market awaited the release of the Fed minutes. Dow Jones futures were weak during Wednesday's European trading session, with rising US Treasury yields weighing on investor sentiment as the market awaited the release of the minutes from the Federal Reserve's latest Federal Open Market Committee (FOMC) meeting. The US Treasury market remained under pressure, with the 10-year yield rising above 5.30% and the 30-year yield hovering around 5.69%. Persistent inflation concerns, a widening fiscal deficit, and a significant increase in AI-related bond issuance were the main factors driving yields high. Escalating geopolitical conflicts in the Middle East pushed up oil prices, further exacerbating inflationary pressures and maintaining market expectations for interest rate hikes. However, recent weak US employment data reduced market expectations for aggressive tightening by the Fed. According to the CME FedWatch tool, traders currently estimate only about a 22% probability of a rate hike at the Fed's October meeting.
