As investors anticipate the Fed rate decision, treasury yields rise slightly.

On Tuesday, U.S. Treasury yields slightly increased as investors focused on upcoming economic data before the Federal Reserve's next interest rate decision.

The yield on the increased by more than 3 basis points to 4.434%. The yield was previously higher by 3 basis points at 4.281%.

Prices and yields move in opposite directions, with one basis point equal to 0.01%.

On Tuesday, the Federal Reserve's meeting was set to begin, and investors were eagerly anticipating the latest economic data insights.

On Tuesday, the U.S. retail sales figures for November will be released, offering insights into consumer spending and their financial status. This report will be followed by the latest building permit and housing starts data on Wednesday, leading up to the Fed's interest rate decision announcement on the same day.

The Fed is predicted to reduce interest rates, with traders estimating a 95% chance of a cut, according to CME Group's FedWatch tool. The market is anticipating a 25-basis-point reduction.

The Fed has reduced interest rates by 50 and 25 basis points in September and November, respectively, marking the third consecutive reduction.

The Fed Chairman Jerome Powell's post-meeting press conference and any guidance issued by the central bank will be closely followed by investors, in addition to their focus on the Fed's economic and interest rate projections, which are published four times a year.

The European Central Bank cut interest rates by a quarter point in its fourth reduction of the year, and the Bank of England will make its own rate decision later this week in the U.K.