Treasury Yields Rise As Investors Look to Fed Rate Decision

The 10-year Treasury yield hit a three-month high on Tuesday as investors awaited the Federal Reserve's latest interest rate decision.

The Fed is widely expected to raise interest rates by 25 basis points, which would be the first hike since December 2018. The move is seen as a sign that the U.S. economy is strengthening and that the Fed is confident in its ability to prevent inflation from rising too high.

The 10-year Treasury yield, which is a benchmark for interest rates on long-term borrowing, rose to 2.94% on Tuesday, its highest level since November. The yield on the 30-year Treasury bond also rose, to 3.22%.

The increase in Treasury yields is a sign that investors are expecting the Fed to raise interest rates. The Fed has been raising rates gradually since December 2015, and it is expected to continue to do so in the coming months.

The Fed is raising rates in an effort to prevent inflation from rising too high. Inflation is the rate at which prices for goods and services are rising, and it can be a sign that the economy is overheating.

The Fed's goal is to keep inflation at a low and stable level, around 2%. If inflation rises too high, it can erode the value of savings and make it more difficult for businesses to plan for the future.

The Fed is raising rates gradually in an effort to prevent inflation from rising too quickly. The Fed is also watching other economic data, such as job growth and consumer spending, to make sure that the economy is not slowing down too much.

The Fed's rate decision is expected to be announced at 2 p.m. ET on Wednesday.