Treasuries Close Nearly Flat Ahead Of Fed Announcement

(RTTNews) - Treasuries showed a lack of direction over the course of the trading session on Tuesday before ending the day roughly flat.

After seeing early strength, bond prices pulled back near the unchanged line. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, inched up by less than a basis point to 2.481 percent.

The roughly flat close by treasuries came as traders looked ahead to the Federal Reserve's monetary policy decision on Wednesday.

The Fed is widely expected to increase interest rates by 25 basis points, reflecting the first rate hike in a year.

The accompanying statement is likely to be in focus, as traders gauge the outlook for further monetary policy normalization by the central bank.

Meanwhile, the Treasury Department sold $12 billion worth of thirty-year bonds on Tuesday.

The thirty-year bond auction drew a high yield of 3.152 percent and a bid-to-cover ratio of 2.39.

Last month, the Treasury sold $15 billion worth of thirty-year bonds, drawing a high yield of 2.902 percent and a bid-to-cover ratio of 2.11.

The Fed announcement is likely to be in the spotlight on Wednesday, although traders are also likely to keep an eye on reports on producer prices, retail sales and industrial production.