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U.S. Treasury Yields Edge Lower Ahead of Key Fed Decision

Samuel Corum / Getty

U.S. Treasury yields fell on Tuesday as investors geared up for a key policy decision from the Federal Reserve.

The yield on the benchmark 10-year Treasury note fell 2 basis points to 2.8%, while the yield on the 30-year Treasury bond moved 3 basis points lower to 3.019%. Yields move inversely to prices and a basis point is equal to 0.01%.

Much of this week's focus will center on the U.S. Federal Reserve's two-day policy meeting, which begins on Tuesday. Economists are broadly expecting a 75 basis point hike to interest rates.

The Fed is attempting to curb inflation while navigating a backdrop of slowing growth, as evidenced by weaker-than-expected data last week on business activity and jobs.

Treasury Secretary Janet Yellen told NBC on Sunday that while there are signs that the U.S. economy is at risk of recession, a downturn is not inevitable.

Wall Street will be guided this week by a deluge of major corporate earnings reports. On Tuesday, retail stocks pulled the stock market lower in early trading following disappointing guidance from Walmart. Coca-Cola, McDonald's, 3M and General Electric reported more upbeat second-quarter results. Alphabet and Microsoft are among companies reporting after the bell.

On the economic front, the latest reading of the Case-Shiller Home Price Index showed home prices in May were 19.7% higher compared with the same month last year, compared to an annual gain of 20.6% in May.

— CNBC's Elliot Smith and Sarah Min contributed to this report.

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