Treasuries Move Modestly Higher Ahead Of Fed Announcement

(RTTNews) - Treasuries showed a modest move to the upside during trading on Tuesday as traders looked ahead to the Federal Reserve's monetary policy announcement.

Bond prices showed a lack of direction early in the session but climbed a little more firmly into positive territory as the day progressed. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, dipped 1.4 basis points to 3.983 percent.

The modest strength among treasuries came as the Fed is widely expected to lower interest rates by another quarter point at the end of the its two-day meeting tomorrow.

Traders are likely to pay close attention to the accompanying statement as well as Fed Chair Jerome Powell's post-meeting comments for clues about the likelihood of further rate cuts.

CME Group's FedWatch Tool is currently indicating a 90.8 percent chance the Fed will lower rates by another quarter point in December, but the views about the chances of further rate cuts in early 2026 are more mixed.

In U.S. economic news, the Conference Board released a report showing a modest deterioration by consumer confidence in the month of October.

The Conference Board said its consumer confidence index dipped to 94.6 in October from an upwardly revised 95.6 in September.

Economists had expected the consumer confidence index to slip to 93.4 from the 94.2 originally reported for the previous month.