U.S. government debt yields rose on Tuesday as the Federal Open Market Committee (FOMC) prepared to start a two-day meeting, with the yield on the 2-year Treasury note clinching a nine-year high.
The yield on the 2-year note topped 2.332 percent, its highest since Sept. 9, 2008, while the yield on the 10-year Treasury note topped 2.888 percent, its highest level in more than a week.
The yield on the benchmark 10-year Treasury note was higher at around 2.879 percent at 9:37 a.m. ET, while the yield on the 30-year Treasury bond was higher at 3.112 percent. Bond yields move inversely to prices.
The FOMC meeting starts today and is expected to see the central bank raises interest rates for the first time in 2018; it is also the first meeting headed by newly-appointed Fed Chair Jerome Powell.
Investors will also be paying close attention to whether the Federal Reserve comments on key topics such as inflation, the state of the U.S. economy and politics. While trade has shaken up markets as of late, the Fed may choose to not mention the topic of potential trade wars, in order to keep markets at bay.
President Donald Trump’s administration is reportedly looking into inflicting $60 billion in tariffs against China, according to the Washington Post. Trump recently signed two declarations imposing tariffs on steel and aluminum imports from countries worldwide, bar Canada and Mexico.
Trump is expected to welcome Saudi Arabia’s Crown Prince Mohammed bin Salman to the White House on Tuesday, where the two leaders are expected to comment upon security and economic priorities.