U.S. Treasury yields moved higher on Wednesday as investors keenly anticipated the Federal Reserve's interest rate decision, set to take place early afternoon.
The benchmark 10-year Treasury yield rose more than 1 basis point to 4.204%. The 30-year Treasury yield was up 1 basis point at 4.819%, while the 2-year Treasury yield nudged higher by more than a basis point to 3.625%.
One basis point is equivalent to 0.01%, and yields and prices move in opposite directions.
The Federal Open Market Committee is set to conclude its two-day meeting later today, and is widely expected to deliver an interest rate cut â it will be the final meeting of the year.
Traders are currently pricing in approximately a 90% chance of a quarter percentage point cut to a range of 3.5%-3.75%, according to the CME FedWatch Tool.
Sentiment remains split amongst FOMC members, especially as some are in favour of the cuts to prevent further labor market weakness, while other policymakers think another cut could make inflation worse.
The term "hawkish cut" â which has defined this meeting â refers to expectations that the Fed will reduce interest rates.
"The likeliest outcome is a kind of hawkish cut where they cut, but the statement and the press conference suggesting that they may be done cutting for now," Bill English, the Fed's former director of monetary affairs and now a Yale professor, said.
English expects the message will be "that they've made an adjustment and they're comfortable where they are, and they don't see a need to do anything more in the near term, as long as things play out more or less as they expect."
Investors will also monitor Fed Chair Jerome Powell's post-meeting comments at his news conference for hints about future monetary policy decisions.
â CNBC's Jeff Cox contributed to this report.