How Fed’s higher-for-longer theme may play out in Treasurys and the dollar on Wednesday

In the run-up to Wednesday’s Federal Reserve policy decision, strategists at TD Securities are pinpointing two places in the financial market that are most likely to shift as the result of a continued higher-for-longer message on interest rates: Treasury yields and the U.S. dollar.In a note released on Tuesday, strategists Oscar Munoz, Gennadiy Goldberg, and Mark McCormick said they expect the 10-year Treasury yield BX:TMUBMUSD10Y to experience a slight bump-up from Tuesday’s level of around 4.3% under their base-case scenario in which the Fed leaves open the possibility of another rate increase in November or December,…