As the Fed meeting is about to begin, Treasury yields remain relatively unchanged.
On Tuesday, U.S. Treasury yields remained unchanged as the Federal Reserve's monetary policy meeting was set to commence, with many anticipating an interest rate reduction at its end.
The 10-year Treasury yield increased by 2 basis points to 3.623% at 7:06 a.m. ET, while the 2-year Treasury yield remained unchanged at 3.578%.
Prices and yields move in opposite directions, with one basis point equal to 0.01%.
The Federal Reserve is expected to announce an interest rate cut this week, with the decision being made on Wednesday after a two-day meeting. This would mark the first rate reduction since the Fed began raising interest rates in March 2022.
Investors will closely monitor the outlook for interest rates, particularly if any additional cuts are expected this year, following this week's meeting. There are two more meetings scheduled for 2024 after this one.
What is the expected rate cut from the Fed on Wednesday, as indicated by CME Group's FedWatch tool?
On Tuesday, investors will analyze August retail sales figures for clues about the consumer's state before the Fed makes a decision. According to economists surveyed by Dow Jones, a 0.2% decline is predicted.
This week, the latest building permit, housing starts, and existing home sales figures will be released, while the Bank of England and the Bank of Japan are expected to make monetary policy decisions.
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