U.S. Treasury yields struggled for direction on Monday morning, as investors braced for the latest Federal Reserve policy meeting.
The yield on the benchmark 10-year Treasury note made little movement, trading at 1.7475% at 3:30 a.m. ET. The yield on the 30-year Treasury bond fell by less than a basis point to 2.0602%. Yields move inversely to prices and 1 basis point is equal to 0.01%.
The Fed’s January two-day policy meeting is due to start on Tuesday. Investors will be looking for any clues as to how much the central bank will raise interest rates this year and when it will start.
Goldman Sachs said Sunday that its baseline forecast calls for four rate hikes this year, but the bank sees a risk for more rate increases due to the surge in inflation.
Holger Schmieding, chief economist at Berenberg, told CNBC’s “Squawk Box Europe” that the investment bank also expected there to be four rate hikes, of 25 basis points, this year.