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.
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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.