US bond market sees tight moves ahead of US Fed

The US treasuries are seeing modest uptick as trade talks between top US and Chinese officials in Europe continue. The yield on the benchmark ten-year note, which moves opposite of its price, eased to 4.04% yesterday. With recent data showing relatively subdued inflation and a weakening labor market, the Fed is widely expected to lower interest rates by around a quarter point on Wednesday. No critical economic data was on radar in US yesterday, thereby keeping the bond markets in a tight range.