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U.S. Treasury yields inched higher on Tuesday as investors awaited further economic data and looked ahead to the Federal Reserve’s interest rate decision.

At 5:15 a.m. ET, the 10-year Treasury yield was up 1 basis point to 4.221%, while the 2-year Treasury note yield moved less than a basis point higher to 3.591%. The 30-year Treasury yield was also 1 basis point higher to 4.815%.

One basis point equals 0.01%, and yields and prices have an inverse relationship.

The Fed’s rate decision will be the main focus for investors this week, with the policy move expected to be announced on Wednesday afternoon.

Traders are widely expecting the central bank to keep its key rate unchanged at a target range of 3.5% to 3.75%, but they will be monitoring the press conference after for clues on future monetary policy.

Investors are also forecasting two-quarter percentage point cuts by the end of 2026, according to the CME FedWatch Tool, after the Fed cut rates three times in 2025.

On the economic data front, the ADP employment report is set to be released at 8:15 a.m. ET, with home price data and the consumer confidence reading also due to be published in the morning.

Trade uncertainty is also still dominating headlines, with President Donald Trump threatening to slap tariffs of up to 25% on South Korean autos, pharmaceuticals, and lumber on Monday.

Trump said this was due to a delay in South Korea’s legislature approving a trade deal the nation had reached with the U.S. last summer.