12.12.201700:04:00UTC+00Short-dated Yields Rally Ahead of December Fed Meeting

Yields on short-dated bonds edged up on Monday before a policy meeting by the Federal Reserve that is seen to result in the U.S. central bank's third and final interest rate hike of the year, while Janet Yellen's most recent news conference as Fed chairwoman will provide further insights regarding the Fed's outlook for the economy.

The two-year Treasury note yield, the most reactive to expectations for Fed policy, increased 2.5 basis points to 1.823 percent. The benchmark 10-year Treasury note yield was almost unchanged at 2.387 percent, while the yield for the 30-year bond yield was almost flat at 2.772 percent.

Investors are mostly forward to a week with high-level economic data and a Federal Reserve meeting on December 12-13 at which the central bank is expected to hike rates. Consumer-price index data, retail sales and industrial-production figures are slated to be released in the next few days.

The policy's news conference headed by Fed Chairwoman could be her swan song before she steps down in February. Investors said the possible tax cuts could impact the Fed's growth outlook. Still, there was unlikely to be drastic changes to future rate projections and economic estimates.