Treasury Yields Edge Lower As Interest Rate News Awaited
MARKETSCOPE : Treasury bond yields were edging lower Tuesday, as investors waited for news of the U.S. Federal Open Market Committee (FOMC) meeting.
The 10-year Treasury notes were yielding 4.52%, compared to 4.545% earlier Tuesday. Yields fall when prices rise.
Markets expected to hear news about the FOMC policy statement at 2:15 pm Eastern Standard Time. The Fed has hiked interest rates 12 times since 2004 in similar meetings, in an effort to control inflation by making debt more expensive. With the rate currently at 4%, market players are now making their bets on how much longer the Fed will maintain its stance on monetary policy.
The 30 year bonds were yielding 4.72%, compared to an earlier yield of 4.742%.
News hit that U.S. Business Inventories rose 0.3% in October after rising 0.5% in September. Retail Sales rose 0.3% in November, less than the 0.5% expected and unchanged from 0.3% in October.