U.S. Treasury yields were mixed Wednesday as investors awaited the outcome of the Federal Reserve’s December meeting and digested Tuesday’s lighter-than-expected consumer inflation figures.
The yield on the benchmark 10-year Treasury note last traded below the 3.5% level it had briefly crossed on Tuesday. It was down by around one basis point to 3.49% at 5:43 a.m. ET.
The 2-year Treasury was last down by more than four basis points to 4.1844%. Meanwhile, longer-dated Treasury bonds rose.
Yields and prices have an inverted relationship. One basis point equals 0.01%.
Investors are widely expecting the Fed to announce a 50 basis point interest rate hike after its last meeting of the year concludes on Wednesday.
That would be a slight reduction compared with those after the central bank’s last four meetings, which each saw rates being hiked by 75 basis points. The pace had prompted investor concerns that the Fed’s policy would lead the U.S. economy into a recession.
Fed Chairman Jerome Powell is also due to give a press conference after the meeting ends. Investors are hoping to receive guidance on monetary policy and the central bank’s assessment of inflation and the state of the wider U.S. economy.