The Federal Open Market Committee is due to begin its two-day meeting on Tuesday.
Auctions are due to be held on Tuesday for $20 billion of 42-day bills and $61 billion of 5-year notes.
U.S. Treasury yields fell slightly on Tuesday morning, as the Federal Reserve is set to kick off its two-day policy meeting.

The yield on the benchmark 10-year Treasury note fell 2 basis points to 1.249% at 3:30 a.m. ET. The yield on the 30-year Treasury bond dipped 2 basis points to 1.907%. Yields move inversely to prices and 1 basis point equals 0.01 percentage points.

TREASURYS
TICKER COMPANY YIELD CHANGE %CHANGE
US3M U.S. 3 Month Treasury 0.051 0.00 0.00
US1Y U.S. 1 Year Treasury 0.076 0.005 0.00
US2Y U.S. 2 Year Treasury 0.207 -0.009 0.00
US5Y U.S. 5 Year Treasury 0.699 -0.014 0.00
US10Y U.S. 10 Year Treasury 1.251 -0.025 0.00
US30Y U.S. 30 Year Treasury 1.903 -0.022 0.00
The Federal Open Market Committee is due to begin its two-day meeting on Tuesday. A statement will then be released after meeting concludes on Wednesday afternoon, giving insight as to where the Fed stands on its monetary policy outlook.

Mobeen Tahir, associate director of research at WisdomTree, told CNBC’s “Squawk Box Europe” on Tuesday that his firm believed that the “narrative from central banks is evolving but not evolving fast enough.”

Tahir said this has three major implications: firstly, that inflation could be higher for longer. Secondly, he said “volatility could be triggered by changes in monetary policy, as markets are waiting and reacting to ever single announcement that the Federal Reserve makes.”

Thirdly, Tahir said that if the Fed were forced to “slam the brakes” on accommodative on monetary policy to control inflation, that could result in a “taper tantrum.” This happened in 2013 after Fed Chairman Ben Bernanke hinted at the tapering of asset purchases, prompting a spike in bonds yields.

On the data front, May’s S&P/Case-Shiller Home Price index is due out at 9 a.m. ET.

Auctions are due to be held on Tuesday for $20 billion of 42-day bills and $61 billion of 5-year notes.