Bond yields moved higher early Wednesday as investors awaited the Federal Reserve's latest monetary policy decision, due later in the session.
The 10-year Treasury note yield — the main benchmark for mortgages, auto loans and credit card debt — was more than 2 basis points higher at 5.0134%.
The yield on the 2-year Treasury note, which more closely follows short-term Federal Reserve rate decisions, was up 1 basis point at 4.7494%.
Meanwhile, the yield on longer-dated 30-year U.S. Treasurys — which tend to move on geopolitical events — was also up by more than 1 basis point at 5.3200%.
One basis point equals 0.01%, or 1/100th of 1%, and yields and prices move inversely to one another.
The moves come as traders price in a 90.6% chance that the rate-setting Federal Open Market Committee will leave interest rates unchanged at 375-400 basis points, according to the CME FedWatch Tool .
Investors will be closely watching Fed chairman Kevin Warsh's statement following the decision for signals on future monetary policy projections. Expectations for a 25 basis points hike at the Fed's next meeting on Dec. 9 currently stand at 76.5%.
More economic data is due Thursday. Personal consumption expenditures index — the Fed's preferred inflation gauge — as well as the quarterly GDP growth rate and personal income and spending data will offer investors additional insights into the domestic economy and inflation picture.
