Treasury yields tick higher ahead of Federal Reserve interest rate decision

Bond yields moved higher early Wednesday as investors awaited the Federal Reserve's latest monetary policy decision, due later in the session.

The 10-year Treasury note yield — the main benchmark for mortgages, auto loans and credit card debt — was more than 2 basis points higher at 5.0134%.

The yield on the 2-year Treasury note, which more closely follows short-term Federal Reserve rate decisions, was up 1 basis point at 4.7494%.

Meanwhile, the yield on longer-dated 30-year U.S. Treasurys — which tend to move on geopolitical events — was also up by more than 1 basis point at 5.3200%.

One basis point equals 0.01%, or 1/100th of 1%, and yields and prices move inversely to one another.

The moves come as traders price in a 90.6% chance that the rate-setting Federal Open Market Committee will leave interest rates unchanged at 375-400 basis points, according to the CME FedWatch Tool.

Investors will be closely watching Fed chairman Kevin Warsh's statement following the decision for signals on future monetary policy projections. Expectations for a 25 basis points hike at the Fed's next meeting on Dec. 9 currently stand at 76.5%.

More economic data is due Thursday. Personal consumption expenditures index — the Fed's preferred inflation gauge — as well as the quarterly GDP growth rate and personal income and spending data will offer investors additional insights into the domestic economy and inflation picture.