U.S. Treasury yields moved slightly higher on Tuesday, as investors looked to economic data due ahead of the Federal Reserve's next interest rate decision.
At 5:51 a.m. ET, the yield on the 10-year Treasury was up by over 2 basis points at 4.418%. The 2-year Treasury yield was last more than 2 basis points higher at 4.272%.
Yields and prices move in opposite directions. One basis point equals 0.01%.
On Tuesday, investors were watching out for the latest economic data insights, as the Federal Reserve's meeting is set to kick off.
The U.S. retail sales figures for November, which will provide fresh clues about the state of consumers and their spending, are due out on Tuesday. The report will be followed by the latest building permit and housing starts data on Wednesday, before the Fed announces its interest rate decision that same day.
A rate cut is widely expected from the Fed, with traders pricing in an over 95% chance of a reduction according to CME Group's FedWatch tool. Markets are widely anticipating a 25-basis-point trim.
This would be the third consecutive interest rate reduction from the Fed, which slashed rates by 50 basis points in September and by 25 basis points in November.
Money Report
Investors will also be closely following the post-meeting press conference with Fed Chairman Jerome Powell, as well as keeping an eye on any guidance issued by the central bank alongside. This will include the Fed's economic and interest rate projections, which are published four times a year.
The Fed's meeting comes after the European Central Bank last week cut interest rates by a quarter point in its fourth reduction of the year. In the U.K., the Bank of England is set to make its own rate decision later this week.
