US Treasury Yields Dip Slightly Ahead of Bond Auction and Federal Reserve Meeting; Investors Await Rate Decision

U.S. Treasury yields experienced a slight decrease in early trading. The two-year Treasury yield fell by 1.5 basis points, reaching 4.040%. Simultaneously, the 10-year yield decreased by 0.6 basis points, settling at 4.300%. Market expectations heavily favor the Federal Reserve pausing interest rate hikes. The Fed may also signal a cautious approach to future rate cuts. The U.S. Treasury is scheduled to auction $13 billion in 20-year bonds. Additionally, on Thursday, the Treasury will auction $18 billion in 10-year TIPS (Treasury Inflation-Protected Securities).