September 12, 2026
Bond yields keep rising and chip stocks are fading as the market waits to see if the Fed will steady the jump in government borrowing costs.
What happened
Government bond prices fell another 1.4 percent over the past week, pushing yields higher. The move unsettled roughly 500 billion dollars of market value. A sharp 9.4 percent weekly surge in oil added pressure, while chip and defence stocks retreated within their trends.
Why it matters
Rising yields make the government's borrowing more expensive for everyone else, from mortgage holders to corporations, and pull money away from riskier assets. The Fed's tone today is being watched to see if it can stop a selloff that is tightening financial conditions on its own.
The case against
Yields could keep climbing no matter what the Fed says if oil's surge feeds through to prices, forcing the bond market to price in sticky inflation that the central bank cannot easily talk down.
What settles it
Whether the two year Treasury yield falls on the Fed's statement, which would show the bond market accepting the central bank's roadmap.