U.S. Treasury yields ticked up on Tuesday morning, ahead of the Federal Reserve's December policy meeting.
The yield on the benchmark 10-year Treasury note added 1.7 basis points, rising to 1.441% in afternoon. The yield on the 30-year Treasury bond rose about 1 basis point to 1.826%. Yields move inversely to prices and 1 basis point is equal to 0.01%.
Treasurys
The Fed is due to kick off its latest monetary policy meeting on Tuesday, in which it is expected to discuss speeding up the tapering of its bond-buying program. The meeting wraps up on Wednesday afternoon, and will be followed by a press conference with Fed Chairman Jerome Powell.
On the data front, the November producer price index showed a record increase year over year, the latest in a string of hot inflation readings for the U.S. economy.
A Friday report showed that the consumer price index rose by 6.8% in November year on year, representing the biggest increase since 1982.
The 10-year yield is still trading well below its highs from November, when it nearly reached 1.7%. The rise of the omicron variant of Covid 19 has also flamed concerns about global growth, pressuring yields.
"It remains a global bond market and a sustained rally in Treasury yields won't happen until Bund
and GILT yields can also sustainably rise. And if those regions are considering lockdowns once again, then that will put a headwind on the uptrend in yields," Tom Essaye of the Sevens Report said in a note on Tuesday.
No auctions are scheduled to be held on Tuesday.
— CNBC's Pippa Stevens contributed to this market report.