The yield on the 2-year Treasury note rose more than 1 basis point to 3.793%, while the yield on the 10-year note rose less than 1 basis point to 4.314%. Yields and prices move in opposite directions; one basis point equals 0.01%.
Fed on Hold as Powell Faces Final Meeting
The Federal Reserve is scheduled to announce its monetary policy decision on Wednesday. Chairman Jerome Powell is expected to keep interest rates unchanged. This could be Powell's final meeting before Kevin Warsh is anticipated to take over in May.
The Department of Justice dropped its criminal probe into Powell on Friday, leading Senator Thom Tillis to end his block on Warsh's confirmation.
Analyst Perspectives
ING analysts wrote that investors are unlikely to receive "anything particularly revelatory" from the policy statement. The analysts noted that the previous meeting minutes indicated the "vast majority" of the FOMC saw employment risks as skewed to the downside, and inflation progress may be slower due to economic headwinds from Middle East developments.
They stated that the committee is likely to maintain this assessment with no immediate policy change signaled.
"Investors are unlikely to receive anything particularly revelatory from the policy statement."
— ING analysts
Key Central Bank Meetings This Week
The European Central Bank (ECB) and Bank of England (BOE) are also scheduled to announce monetary policy decisions on Thursday. Economists expect both central banks to keep benchmark interest rates unchanged but leave the door open for later hikes.