Yields Dip Ahead of Fed Decision as Oil Prices Plummet

Treasury yields dipped lower on Tuesday as investors await the Federal Reserve's interest rate decision. The 10-year Treasury note yield fell by more than 2 basis points to 4.6163%, while the 2-year Treasury note yield dropped by over 2 basis points to 4.2932%. The longer-dated 30-year Treasury yield also declined, down by more than 1 basis point at 5.1104%.

The Fed's rate-setting Federal Open Market Committee is expected to leave rates unchanged at 3.75%, with markets pricing in a 56% chance of a September hike, according to the CME Group's FedWatch tool.

Traders are also keeping an eye on oil prices, which plummeted following President Donald Trump's announcement that the US had held 'good talks' with Iran. West Texas Intermediate futures fell by 2.89% to $80.21 per barrel, while Brent crude dropped by 3.50% to $85.29.