U.S. Interest Rate Markets

Sep 10-year T-notes this morning are unch. Tuesday's closes: TYU8 -1.00, FVU8 -1.25. Sep 10-year T-notes on Tuesday closed lower on the U.S. May core CPI report of +2.2% y/y, the fastest pace of increase in 15 months, which was hawkish for Fed policy. T-note prices were also undercut by expectations for the Fed to hike the fed funds target range by 25 bp at Wednesday's FOMC meeting.