Before the Fed meeting, yields on treasury bonds rise ahead of the final inflation print.

Before the Fed meeting, yields on treasury bonds rise ahead of the final inflation print.
Before the Fed meeting, yields on treasury bonds rise ahead of the final inflation print.

Early Tuesday, treasury yields were slightly higher in anticipation of the upcoming final major inflation prints before the Federal Reserve's September meeting.

The yield on the was 2 basis points higher at 3.719%, and the yield also increased by more than 2 basis points at 3.689%.

Prices and yields move in opposite directions. A basis point is equivalent to 0.01%.

After a week of declining treasury yields due to missed labor market estimates, the data caused U.S. stocks to experience their worst week of the year.

The consumer price index for August, which will be released on Wednesday, is eagerly anticipated by investors to determine if headline inflation will continue to decrease from July's 2.9% reading.

That will be followed by the producer price index on Thursday.

The Fed is considering whether to cut interest rates by 50 basis points instead of 25 basis points during the upcoming meeting. Some analysts believe this move would demonstrate the Fed's dedication to promoting job growth, while others argue it would be an unneeded step that could cause market chaos.

The FedWatch Tool from CME Group predicts a 50 basis point move in market pricing at 27%, while a smaller move is priced at 73%.

by Jenni Reid

Markets