10-year Treasury yield ticks higher ahead of Fed meeting

U.S. Treasury yields edged higher Monday ahead of a highly anticipated meeting of the Federal Reserve’s Federal Open Market Committee.

The yield on the 10-year Treasury was trading around 3.467% at 6:22 a.m. ET, up 1 basis point. The 2-year Treasury yield was up 2 basis points at 4.087%.

Yields and prices move in opposite directions. One basis point equals 0.01%.

The Fed is expected to announce a 25-basis point interest rate hike Wednesday at the conclusion of its meeting. Investors are particularly interested in any guidance on how long rates will remain elevated and when rate cuts could get underway.

It follows GDP figures last week indicating slower-than-expected economic growth in the first quarter. The personal consumption expenditure index, meanwhile — one of the Federal Reserve’s preferred inflation gauges — rose on the previous quarter, coming in at 4.2%.

On Monday, ISM manufacturing data, construction spending and S&P Global manufacturing PMI are due. Later in the week, April’s nonfarm payrolls report is slated for Friday.