Yields have risen ahead of the Fed's Tuesday meeting.
Investors are expecting an announcement on the central bank's latest decision on monetary policy. Though most do not expect a rate hike this month, the Fed is projected to announce the unwinding of its massive $4.5 trillion portfolio. Market expectations for a December Fed rate hike are now at 55.8 percent according to the CME Group's Fedwatch tool.
The first reduction is expected to be $10 billion a month, and the Fed will taper that back further after three months. Many strategists expect little to no market impact in the early stages of the program, which has been well broadcast by the Fed.
Still, this is a move into uncharted territory as the Fed takes steps to begin reversing the asset purchases it made in light of the financial crisis about a decade ago.
On the data front, builder confidence dropped to 64 on the National Association of Home Builders/Wells Fargo Housing Market Index, from a downwardly revised August reading. Anything above 50 on the index is considered positive territory.
The labor shortage in the construction industry may be the reason behind a three-point drop in September on a monthly index of home- builder sentiment.
The U.S. Department of the Treasury is due to release Treasury International Capital (TIC) data for July 2017 at 2:00 p.m. in New York.
Geopolitics will also be front and center this week as the annual gathering of world leaders at the United Nations in New York begins.
International diplomats are eager to hear President Donald Trump address the 193-member body for the first time, especially following a bout of fierce rhetoric between the United States and North Korea, which has been testing its nuclear technology in recent weeks.