Equity-index futures were lower on Wednesday as investors remained wary ahead of the release of the Federal Reserve’s meeting minutes. Treasury yields continuing to move higher added to the cautious mood.
Deutsche Bank said the rebound in yields reflects growing skepticism about the chance of near-term interest rate cuts by the Fed.
“Clearly, investors are still pricing in a Q1 rate cut as more likely than not, but there’s been a bit more doubt over the last 48 hours as to whether the aggressive rate cuts priced for 2024 will actually end up happening,” Deutsche added.