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Treasuries Move Lower Ahead Of Fed Announcement

Treasuries moved to the downside during trading on Tuesday, extending the decline seen in the previous session.

Bond prices saw some volatility in morning trading but remained firmly negative throughout the afternoon. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, rose by 2.7 basis points to 2.726 percent.

With the increase on the day, the ten-year yield ended the session at its highest closing level in well over three years.

The continued decline by treasuries came as traders looked ahead to the Federal Reserve's monetary policy announcement on Wednesday.

While the Fed is widely expected to leave interest rates unchanged, the central bank is likely hint at further interest rate hikes in the coming months.

On the U.S. economic front, the Conference Board released a report showing consumer confidence in the U.S. rebounded by more than expected in the month of January.

The Conference Board said its consumer confidence index climbed to 125.4 in January from an upwardly revised 123.1 in December.

Economists had expected the consumer confidence index to rise to 123.6 from the 122.1 originally reported for the previous month.

The Fed announcement is likely to be in focus on Wednesday, overshadowing reports on private sector employment, pending home sales and Chicago-area business activity.

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