US Treasury yields fell on Tuesday as investors geared up for more corporate earnings this week and a key policy decision from the Federal Reserve.
Yield on Benchmark 10 year treasury note fell 4 basis points to 2.7795%, while the yield 30 Year Treasury Bond fell 4 basis points to 3.0032%. Yields move inversely to prices and equal one basis point to 0.01%.
Much of this week’s focus will be on the US Federal Reserve’s two-day policy meeting, which begins Tuesday. Economists are broadly expecting an increase of 75 basis points in interest rates.
The Fed is attempting to curb inflation while navigating a backdrop of slowing growth, as evidenced by weaker-than-expected data on business activity and jobs last week.
Treasury Secretary Janet Yellen told NBC on Sunday that although there are signs the US economy is at risk of a recession, a recession is not inevitable.
Wall Street will be guided by a flood of major corporate earnings reports this week. On Tuesday, Coca-Cola, McDonald’s and General Motors are set to report before the bell. Companies reporting after the bell include Alphabet and Microsoft.
On the economic front, traders expect the latest reading of the Case-Shiller Home Price Index at 9 a.m. ET. Consumer confidence reports and new home sales data are due out at 10 a.m. ET.
There is no Treasury Bill auction taking place on Tuesday.
— CNBC’s Elliot Smith and Sarah Min contributed to this report.