Benchmark 10-year Treasury yields dipped, trading around 2.0337 percent, having closed at 2.058 percent on Monday. Yields had been trading around a two-week high following a rate cut by China's central bank on Friday.
Yields on the 30-year Treasury dipped to 2.8594 percent after finishing at 2.867 percent in the previous session.
The Fed is expected to hold off on an interest rate rise and releases its post-meeting statement at 2 p.m. ET Wednesday. However, it is expected to leave the door open for the chance of a December rate hike.
There are also several important economic reports Tuesday, including durable goods, which came in down 1.2 percent lower for September.
Home prices rose 5.1 percent in August, in line with expectations, according to the latest S&P/Case-Shiller City Composite index.
Consumer confidence came in at 97.6 for October, below the expected 103.
Meanwhile, there appeared to be some encouraging news overnight with respect to prospects of a near-term budget deal. Congress and the White House have reached a tentative agreement to effectively suspend the debt ceiling until March 2017, which would effectively avoid a potential government shutdown at least until after the election.