Traders work on the floor of the New York Stock Exchange.
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The 10-year Treasury yield edged higher on Tuesday as investors awaited further economic data and looked ahead to the Federal Reserve’s interest rate decision.
The 10-year Treasury yield rose 2 basis points to 4.231%, while the 2-year Treasury yield fell more than 2 basis points to 3.571%. The yield on the 30-year U.S. Treasury rose more than 3 basis points to 4.841%.
One basis point is equivalent to 0.01%, and yield and price are inversely related.
The Fed’s interest rate decisions will be the main focus for investors this week, with policy decisions expected to be announced Wednesday afternoon.
Traders widely expect the central bank to keep interest rates unchanged in its target range of 3.5% to 3.75%, but will be watching the subsequent press conference for clues about future monetary policy.
After the Fed cuts interest rates three times in 2025, investors also expect another quarter of a percentage point cut by the end of 2026, according to the CME FedWatch tool.
Trade uncertainty also continues to dominate headlines, with President Donald Trump threatening to impose tariffs of up to 25% on South Korean cars, medicine and lumber on Monday.
President Trump said this was due to delays in South Korea’s parliamentary approval of the agreement reached with the US last summer.
