Bond Market Repricing Tightens Global Conditions Before Fed Acts

Rising Treasury yields in early June 2026 have forced investors to price in larger Federal Reserve rate hikes. The repricing is already tightening financial conditions globally—lifting borrowing costs and compressing risk appetite for leveraged positions and emerging-market dollar borrowers—before the FOMC meets. The mechanism is familiar: expected policy, not actual policy, does much of the Fed's tightening work first.