U.S. government debt prices rose on Tuesday as investors fled riskier assets and geared up for a key Federal Reserve meeting.
The yield on the benchmark 10-year Treasury note sank to 2.826 percent while the yield on the 30-year Treasury bond dropped to 3.082 percent. Bond yields move inversely to prices.
Stocks have suffered wild bouts of volatility as of late, with the S&P 500 dipping as much as 2 percent on Monday, marking a new low for the index. Major indexes pointed to a marginal recovery on Tuesday however.
The big news for traders this week is the Federal Open Market Committee’s (FOMC) upcoming meeting, where the central bank will set interest rates. The central bank is widely expected to hike rates on Wednesday, however expectations for further rate hikes in 2019 have dampened amid concerns of a potential slowdown in economic growth.