Some investors bet peak policy rate is near ahead of Fed decision

As Treasuries wobble ahead of the outcome of the Federal Reserve's monetary policy meeting on Wednesday, some investors are buying into the weakness, confident that a peak in interest rates will eventually lift the market for U.S. government debt. It's a bet that has backfired several times in the past year, as stronger-than-expected economic growth forced investors to recalibrate views for how soon the U.S. central bank would cut rates, keeping Treasury yields elevated. Bullish investors, however, believe ebbing inflation and looming threats to U.S. growth in the fourth quarter make it likely that the peak for rates – and in turn, Treasury yields – is approaching.