Before the Federal Reserve's interest rate decision was announced in 1900 GMT, the cost of default protection for Euro-denominated credit bonds rose slightly. Market prices reflect an 89% chance that the Fed will cut interest rates in Wednesday's interest rate decision, but investors aren't sure how fast policymakers will cut interest rates in the future. Capital.com's Daniela Hathorn said in a report: “The market will want to know where [the Federal Reserve] members think interest rates will be in December 2026. “According to data from S&P Global Markets Financial Intelligence, the iTraxx Europe Crossover Euro High Yield Credit Default Swap Index rose 1 basis point to 256 basis points. iTraxx Europe Senior Financials Euro Investment-grade Credit Default Swap Index rose 1 basis point to 57 basis points.

Before the Federal Reserve's interest rate decision was announced in 1900 GMT, the cost of default protection for Euro-denominated credit bonds rose slightly. Market prices reflect an 89% chance that the Fed will cut interest rates in Wednesday's interest rate decision, but investors aren't sure how fast policymakers will cut interest rates in the future. Capital.com's Daniela Hathorn said in a report: “The market will want to know where [the Federal Reserve] members think interest rates will be in December 2026. “According to data from S&P Global Markets Financial Intelligence, the iTraxx Europe Crossover Euro High Yield Credit Default Swap Index rose 1 basis point to 256 basis points. iTraxx Europe Senior Financials Euro Investment-grade Credit Default Swap Index rose 1 basis point to 57 basis points.