U.S. government debt yields edged higher on Tuesday morning with traders awaiting a monetary policy decision from the Federal Reserve, which at its July meeting is expected to cut to interest rates for the first time in over a decade.
At around 12:03 p.m. ET, the yield on the benchmark 10-year Treasury note, which moves inversely to price, was fractionally above the flatline at around 2.068%, while the yield on the 30-year Treasury bond rose to 2.588%.
Market focus is largely attuned to the Federal Open Markets Committee (FOMC) meeting next week, with markets pricing in a 25 basis point cut to interest rates. The Fed will announce its decision on Wednesday.
U.S. Treasury Secretary Steven Mnuchin and Trade Representative Robert Lighthizer are set to resume in-person trade negotiations with China on Tuesday in Shanghai, though there is little hope of a resolution in the immediate future.
Economic data will also be in focus, with June's personal income, consumer spending and core inflation data due at 8:30 a.m. ET.
The S&P/Case-Shiller house price index for May is due for release at 9:00 a.m. ET, while June's pending home sales and July consumer confidence figures will be published at 10:00 a.m. The Dallas Fed's services index is due at 10:30 a.m. ET.