As investors anticipate the Fed's rate decision, treasury yields increase.

On Wednesday, U.S. Treasury yields rose as anticipation built for the Federal Reserve's interest rate decision, which was scheduled for later in the day.

At 7:05 a.m. ET, the yield on the increased by approximately 2 basis points to 3.664%. The yield had previously been at 3.619%, but increased by nearly 3 basis points.

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

The Federal Reserve's latest interest rate decision and guidance for the monetary policy outlook will be the focus on Wednesday. While a interest rate cut is almost certain, traders are uncertain about the size of the rate reduction.

Recently, investors began pricing in a higher probability of a bigger 50-basis-point reduction, which was not widely expected until recent days. The chances of this last reduction stood at 61%, according to CME Group's FedWatch tool.

The Fed Chairman Jerome Powell will give a post-meeting press conference that could provide insights into the central bank's interest rate policy for the remainder of the year and if more cuts are on the horizon.

The Fed's latest economic projections are also due to be released Wednesday.

Retail sales in August exceeded expectations, increasing by 0.1%, despite economists predicting a 0.2% decline, according to data published Tuesday.

On Wednesday, preliminary building permit and housing starts data for August will be submitted, and on Thursday, existing home sales figures will be released.