U.S. Treasury yields were slightly lower Monday as investors looked ahead to this week's Federal Reserve meeting and interest rate decision.
At 3:53 p.m. ET, the yield on the 10-year Treasury was down around 3 basis points at 3.621%. The 2-year Treasury yield slipped more than 1 basis point at 3.561%.
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Yields and prices move in opposite directions. One basis point equals 0.01%.
The Federal Reserve meeting and interest rate decision are top of mind for investors this week, with the central bank's meeting kicking off Tuesday and concluding Wednesday.
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Markets are anticipating a rate cut from the Fed, the first since it began hiking rates in March 2022, but uncertainty about how big the reduction will be has been widespread. Expectations for a bigger 50-basis-point cut have been growing in recent days.
CME Group's FedWatch Tool last showed traders pricing in a 61% chance of a 50-basis-point cut and a 39% probability of a 25-basis-point cut, a reversal from the previous week.
The Fed's rate decision will be followed by a postmeeting press conference during which Chair Jerome Powell could provide hints about the further outlook for rates and the economy. The central bank is also set to publish its latest economic projections on Wednesday.
Money Report
Investors will also be watching for several economic data releases throughout the week, including August retail sales data on Tuesday, as well as building permit, housing starts and existing home sales figures later in the week.
Elsewhere, the Bank of England will also announce its latest interest rate decision later this week, with markets last being split on whether the central bank will cut rates for the second time in two months then.
