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Treasury Yields Hold Steady As Investors Await Economic Data, Fed Meeting

Treasury Yields Hold Steady As Investors Await Economic Data, Fed Meeting

U.S. Treasury yields were little changed on Tuesday as investors looked to fresh economic data and the start of the Federal Reserve’s two-day September meeting.

At 2:48 a.m. ET, the yield on the 10-year Treasury was up by less than one basis point to 4.3246%. The 2-year Treasury yield was last trading less than one basis point lower at 5.0624%.

Yields and prices move in opposite directions. One basis point equals 0.01%.

The Federal Reserve is expected to announce its next interest rate policy decision on Wednesday, when its September meeting draws to a close. Markets are widely expecting rates to be kept unchanged.

However, uncertainty remains about what the monetary policy path may look like beyond that. Comments from the Fed released alongside its interest rate decision and made in the subsequent press conference will therefore be key for investors who hope to gain insights about the outlook for rates.

Further rates hikes are still a possibility, several Fed officials have indicated in recent weeks, pointing to economic data as a key factor. Recent data has suggested resilience in the economy and continuing but tolerable levels of inflation.

The Fed began its rate-hiking campaign in March 2022 in an effort to lower inflation and cool the economy and has since hiked rates at all but one of its meetings. It left rates unchanged when policymakers met in June, but it hiked rates again at its most recent meeting in July — to the highest level in more than 22 years.

Several economic data points are still due ahead of the interest rate decision, including preliminary building permits and housing starts data for August on Tuesday.

Source: CNBC