Traders work on the floor of the New York Stock Exchange at the opening bell on March 7, 2025.
The benchmark 10-year Treasury yield was lower Tuesday as investors looked ahead to the Federal Reserve's monetary policy decision Wednesday.
The 10-year Treasury yield was down more than 1 basis point at 4.287%. The 2-year Treasury yield was also down more than 1 basis point at 4.042%.
One basis point is equal to 0.01%, and yields and prices move in opposite directions.
Investors are watching the Fed's two-day policy meeting, which got underway Tuesday. Officials are expected to leave benchmark overnight borrowing rates unchanged at the 4.25% to 4.50% level, according to the CME Group FedWatch Tool.
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Federal Reserve Chair Jerome Powell has affirmed that the central bank is not eager to reduce interest rates. Still, investors will watch his comments closely after the meeting for any indications of economic weakness or adjustments in monetary policy.
Investors have been finding it difficult to keep up with U.S. President Donald Trump's rapidly shifting tariff policies, as well as Elon Musk's bold cost-cutting measures in the so-called Department of Government Efficiency, both of which have caused market volatility and raised concerns about the confidence of businesses and consumers.
Concerns about a recession have also increased recently as Wall Street assesses the effects of said tariffs and any retaliatory actions from key trading partners.
