U.S. government debt yields continued their upward climb on Tuesday as the Federal Reserve began its two-day policy meeting.
The yield on the benchmark 10-year Treasury note touched 3.113 percent , just shy of its 2018 high of 3.128 percent that it hit in May. The yield on the 30-year Treasury bond hit 3.249 percent earlier in the session, its highest level since May 18.
The yield on the two-year note, meanwhile, rose to 2.847 percent, its highest since June 25, 2008; the five-year rate hit 2.99 percent, its highest since June 11, 2009. Bond yields move inversely to prices.
The 10-year yield was last seen at 3.096 percent, while the 30-year yield was at 3.227 percent at 3:34 p.m. ET.
The Federal Open Market Committee began its two-day monetary policy gathering Tuesday, with analysts expecting the central bank to announce a quarter-point rate hike when it concludes its meeting tomorrow.
The hike will push the funds target to 2 percent to 2.25 percent, where it last was more than 10 years ago.
The event will also be watched closely to see if the Fed provides any signals as to where monetary policy will be heading over the coming months and into next year.
"The market is fearful that dovish hikes are a thing of the past ... Markets are finally respecting the Fed, and are starting to think that these guys mean business," said George Goncalves, head of fixed-income strategy at Nomura Securities International.
"I'll be watching to see if the Fed's happy with the market's reaction [to its hiking cycle]," he added.