U.S. Treasury yields were lower at the start of the week as investors looked ahead to the Federal Reserve’s interest rate decision and continued to monitor geopolitical and trade uncertainty.

At 5:55 a.m. ET, the 10-year Treasury yield was down by nearly 3 points to 4.211%, and the 2-year Treasury note yield was down over 1 basis point to 3.59%. The 30-year Treasury yield was also 2 basis points lower at 4.809%.

One basis point equals 0.01%, and yields move inversely to prices.

The big event this week will be the Fed’s interest rate decision due on Wednesday afternoon. It marks the central bank’s first policy decision of the year.

Investors are largely expecting policymakers to hold interest rates steady, according to the CME FedWatch Tool. The central bank cut rates three times in 2025, but traders are currently anticipating two quarter-point cuts in 2026.

Geopolitical and trade uncertainty remain in the spotlight, after U.S. President Donald Trump threatened to impose 100% tariffs on Canada if it signed a trade deal with China.

Canadian Prime Minister Mark Carney said Sunday that his country has no intention of pursuing a free trade agreement with China, and respects its obligations under the Canada-U.S.-Mexico trade agreement.