U.S. Treasury yields are flat ahead of the Federal Reserve's monetary policy meeting

U.S. Treasury yields were broadly flat on Tuesday ahead of the Federal Reserve’s two-day monetary policy meeting, starting later in the session, and a spate of economic data releases.

The benchmark 10-year Treasury yield fell less than 1 basis point to 4.982%, while the 30-year Treasury bond was little changed at 5.297%, and the 2-year Treasury note yield was also little changed at 4.707%.

One basis point is equal to 0.01%, and yields and prices move in opposite directions.

The Fed will kick off its two-day monetary policy meeting on Tuesday, with the central bank’s latest interest rate decision due on Wednesday. Traders are widely expecting policymakers to keep the interest rate unchanged at the current target range of 3.75% to 4%, but will look for clues as to whether the Fed will hike interest rates again before the end of the year.

Traders are now pricing in a nearly 90% chance that the Fed will hold rates steady, according to the CME FedWatch Tool.

Investors will also parse Chairman Kevin Warsh’s statement at the press conference following the decision for potential insights on future monetary policy decisions.

Investors also await data on durable orders, consumer confidence and new home sales due later on Tuesday. The latest publication of the personal consumption expenditures index, the Fed’s preferred inflation gauge, is due on Thursday.