As the Fed rate decision approaches, Treasury yields gradually increase.

On Wednesday, U.S. Treasury yields were slightly higher as investors anticipated the Federal Reserve's latest interest rate decision and insights on the American economy and monetary policy from the central bank.

The yield on the increased by more than two basis points to 4.411%, compared to its previous value of 4.255%, which was only one basis point higher.

An inverse relationship exists between yields and prices. A basis point is equivalent to 0.01%.

The Federal Reserve's next monetary policy move, to be announced Wednesday at 2 p.m. ET, is the focus of investors, who expect the Fed to cut rates by a quarter point, making it the third consecutive reduction.

The Fed has decreased interest rates by 75 basis points in total, with a 50-basis-point cut in September and a 25-basis-point reduction in November.

Officials' thoughts on monetary policy and the economy will be revealed through the post-meeting statement and press conference with Fed Chairman Jerome Powell, which investors will closely monitor.

The Fed's upcoming economic and interest rate projections will provide investors with additional insights into potential future developments in areas such as inflation, unemployment, and GDP.

Expectations for inflation are increasing among traders, while projections for rate cuts are decreasing.

The European Central Bank cut rates by 25 basis points for the fourth time this year, and the Bank of England will announce its rate decision on Thursday.

On Wednesday, the U.S. will release preliminary building permit and housing start figures for November.