2017.12.1302:42:00UTC+00U.S. Yields Reverse Gains as Fed Policy Meeting Starts

Treasury prices reversed gains, enabling yields to steady, after solid demand for an auction of long-dated debt. Meanwhile, the Federal Reserve meeting gets underway, with a decision on interest rates expected to be announced on Wednesday.

The two-year Treasury note was unchanged at 1.829 percent. The 10-year Treasury yield edged up 1.6 basis point to 2.403 percent. The 30-year note yield or the long bond rose by a basis point to 2.782 percent.

A solid demand for 30-year bonds helped reduce the decline in government bond prices trimmed the decline in prices. Selling of government paper can affect trading by introducing competing debt into the market, but a solid appetite for debt usually has good implications for secondary-trading prices as well.

Investors are observing a respite in trading as bond buyers manage a strong income of supply from corporate and municipal bonds with issuers looking to take advantage of the opportunity ahead of the tax plan's adoption.

The Federal Open Market Committee kick started the policy meeting. The rate setting group is expected to deliver a third interest-rate increase for the year when the meeting ends on Wednesday.