U.S. Treasury Yields Rise as Federal Reserve Begins Monetary Policy Meeting

U.S. Treasury yields increased on Tuesday as the Federal Reserve commenced its two-day monetary policy meeting, with investors analyzing various economic data. The benchmark 10-year Treasury yield climbed by over 1 basis point to 5.003%, while the 30-year Treasury bond yield also rose to 5.316%. The yield on the 2-year Treasury note increased by 3 basis points, reaching 4.741%.

The Fed's meeting is anticipated to conclude with an interest rate decision on Wednesday, with analysts generally expecting the central bank to maintain the current target range of 3.75% to 4%. Traders are particularly looking for indications of potential rate hikes before the year's end, with the CME FedWatch Tool indicating about a 90% likelihood that rates will remain unchanged.

Investors are also awaiting insights from Chairman Kevin Warsh during the press conference following the decision. On Tuesday, Wall Street reacted to new economic reports, including a 1.8% increase in durable goods orders for September, slightly above the 1.7% expected by economists surveyed by Dow Jones.

Additionally, September new home sales totaled 676,000, falling 0.6% from August but exceeding the Dow Jones consensus estimate of 653,000. Consumer confidence improved in October, rising to 91.7, surpassing the projected figure of 81.0. The personal consumption expenditures index, the Fed's preferred measure of inflation, will be released on Thursday.