10-year Treasury yield tops 1.65% as investors gear up for Fed decision

  • The Federal Open Market Committee is set to conclude its two-day meeting and share its policy decision at 2 p.m. ET on Wednesday afternoon.
  • Fed Chairman Jerome Powell is scheduled to hold a press conference at 2:30 p.m. ET, which investors will be watching closely for any clues on the direction of policy.

The 10-year U.S. Treasury yield briefly topped 1.65% on Wednesday morning, as investors geared up for the Federal Reserve's latest policy decision later in the day.

The yield on the benchmark 10-year Treasury note rose to 1.648% at 3:40 a.m. ET. The yield on the 30-year Treasury bond climbed to 2.321%. Yields move inversely to prices.

Treasurys

The Federal Open Market Committee is set to conclude its two-day meeting and share its policy decision at 2 p.m. ET on Wednesday. The central bank is not expected to take any action on monetary policy.

Fed Chairman Jerome Powell is scheduled to hold a press conference at 2:30 p.m. ET, which investors will be watching closely for any clues on the direction of policy.

Aaron Anderson, senior vice president of research at Fisher Investments, said on Wednesday that while the FOMC had consistently communicated its plans to stick to its current policies for a long time, expectations of higher interest rates and tapering of quantitative easing were on the rise.

"One of the Fed's biggest challenges is to convince the market it means what it says, especially as base effects and supply-chain bottlenecks cause certain inflation data to tick temporarily higher," he said.

"The market will be listening closely for any signs the Fed is wavering on its ultra-accommodative policies," Anderson added.

An auction will be held Wednesday for $35 billion of 119-day bills.

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