U.S. Treasury bonds experienced selling pressure on Tuesday as investors braced for the Federal Reserve’s impending policy meeting. The market is keenly focused on any indications from the Fed regarding the trajectory of interest rate adjustments.

The prevailing expectation of further interest rate increases is contributing to the subdued performance of the bond market. Analysts suggest that sustained inflationary pressures may compel the Fed to maintain its hawkish stance.

Traders are positioning themselves cautiously, mindful of the potential impact of the Fed’s pronouncements on bond yields. The outcome of the meeting is expected to significantly influence near-term market sentiment.