On Tuesday, U.S. Treasury yields showed minimal movement as the Federal Reserve commenced a two-day monetary policy meeting. The benchmark 10-year Treasury yield decreased by 1 basis point to 4.976%, while the 30-year bond yield fell slightly to 5.292%. The 2-year Treasury note yield also dropped by less than 1 basis point to 4.704%.
Investors are largely anticipating that the Fed will maintain the current interest rate range of 3.75% to 4%, with a 90% probability indicated by the CME FedWatch Tool. Market participants are particularly interested in Chairman Kevin Warsh's comments during the press conference following the decision, which may provide insights into future rate hikes.
Additionally, key economic data releases, including durable orders, consumer confidence, and new home sales, are expected later in the day, along with the personal consumption expenditures index, the Fed's preferred inflation measure, set for release on Thursday