Traders work on the floor of the New York Stock Exchange at the opening bell on March 7, 2025.
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U.S. Treasury yields were lower Tuesday as investors await data on housing starts and permits, while looking ahead to the Federal Reserve’s monetary policy decision Wednesday.
The benchmark 10-year Treasury yield fell less than one basis point to 4.3% at 3:12 a.m. ET. The 2-year Treasury yield fell 1 basis point to 4.042%.
One basis point is equal to 0.01%, and yields and prices move in opposite directions.
Investors will be watching February housing starts data due Tuesday and the Federal Reserve’s two-day policy meeting, which will get underway on the same day. Officials are expected to leave benchmark overnight borrowing rates unchanged at the 4.25% to 4.50% level, according to the CME Group FedWatch Tool. Fed Chairman Jerome Powell has affirmed that the central bank is not eager to reduce interest rates. Still, investors will watch his comments closely after the meeting for any indications of economic weakness or adjustments in monetary policy.
Existing home sales data for the month of February is also slated for release on Thursday.
Investors have been finding it difficult to keep up with U.S. President Donald Trump’s rapidly shifting tariff policies, as well as Elon Musk’s bold cost-cutting measures in the Department of Government Efficiency, both of which have caused market volatility and raised concerns about the confidence of businesses and consumers.
Concerns about a recession have also increased recently as Wall Street assesses the impact of said tariffs and any retaliatory actions from key trading partners.
