US Treasury yields fell on Tuesday as investors geared up for a key policy decision from the Federal Reserve.
The yield on the benchmark 10-year Treasury note fell 4 basis points to 2.781%, while the yield on the 30-year Treasury bond fell 4 basis points to 3.01%. Yields move inversely to prices and a basis point is equal to 0.01%.
Much of this week’s focus will center on the US Federal Reserve’s two-day policy meeting, which begins on Tuesday. Economists are broadly expecting a 75 basis point hike to interest rates.
The Fed is attempting to curb inflation while navigating a backdrop of slowing growth, as evidenced by weaker-than-expected data last week on business activity and jobs.
Treasury Secretary Janet Yellen told NBC on Sunday that while there are signs that the US economy is at risk of recession, a downturn is not inevitable.
Wall Street will be guided this week by a deluge of major corporate earnings reports. On Tuesday, Coca-Cola, McDonald’s and General Motors are set to report before the bell. Alphabet and Microsoft are among companies reporting after the bell.
On the economic front, traders are expecting the latest reading of the Case-Shiller Home Price Index at 9 am ET. The consumer confidence report and new home sales data are due out at 10 am ET.
No Treasury bill auctions are taking place Tuesday.
— CNBC’s Elliot Smith and Sarah Min contributed to this report.