Traders work on the floor of the New York Stock Exchange (NYSE) during morning trading in New York on August 23, 2024.
Treasury yields ticked up after strong retail sales data on Tuesday and ahead of the Federal Reserve's monetary policy meeting this week.
The yield on the 10-year Treasury yield added 2 basis points at 3.644%. The 2-year Treasury yield was last more than 4 basis points higher at 3.599%.
Yields and prices move in opposite directions. One basis point equals 0.01%.
Retail sales rose 0.1% in August, coming out better-than-expected as economists polled by Dow Jones had called for a 0.2% decline.
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Investors' eyes are on the Federal Reserve this week, with an interest rate cut from the central bank all but guaranteed. The decision will be announced Wednesday when its two-day meeting ends. This would be the first rate reduction since the Fed began hiking interest rates in March 2022.
Investors will also be looking out for clues about the outlook for interest rates, especially if any further cuts could come this year. After this week's meeting, two more remain on the schedule for 2024.
The key question across markets remains how big the rate cut from the Fed will be on Wednesday. Traders were last pricing in a 65% chance of a 50 basis point reduction according to CME Group's FedWatch Tool, an increase from last week when a 25 basis point cut was more widely anticipated.
Money Report
The latest building permit, housing starts and existing home sales figures are also due later in the week. Elsewhere, monetary policy decisions from the Bank of England and the Bank of Japan are expected in the coming days.
