U.S. Treasury yields moved higher on Wednesday, as market participants braced for the Federal Reserve’s latest policy statement.

The yield on the benchmark 10-year Treasury note climbed to 2.989%, while the 2-year Treasury yield increased to 2.527%. The 30-year bond yield also rose, reaching 3.123%.

Investors are keenly focused on the Fed’s meeting, seeking clues about the central bank’s outlook on inflation and its potential impact on the trajectory of interest rate increases. Recent economic data has suggested a strengthening economy, potentially bolstering the case for further rate hikes.

Analysts suggest that any indication of a more hawkish stance from the Fed could lead to further upward pressure on Treasury yields. Conversely, a more dovish tone could temper the rise in yields.

Beyond the Fed meeting, investors are also monitoring developments in international trade and geopolitical events, which could influence market sentiment and impact Treasury yields.