U.S. government debt prices were lower Wednesday morning, as investors await updates from the Federal Reserve’s policy meeting.

At 02:20 a.m. ET, the benchmark 10-year Treasury note, which moves inversely to price, was higher at around 1.8312%, while the yield on the 30-year Treasury bond was also higher at around 2.2546%.

Market focus remains largely attuned to global trade developments, amid conflicting signals about whether the U.S. will impose even more tariffs on Chinese goods from Sunday.

Speaking at a Wall Street Journal conference on Tuesday, White House economic advisor Larry Kudlow said tariffs on another $156 billion in Chinese goods were “still on the table.”

His comments came after multiple media reports suggested the White House was considering holding off on extra levies this weekend.

The world’s two largest economies have imposed tariffs on billions of dollars’ worth of one another’s goods since the start of 2018, battering financial markets and souring business and consumer sentiment.

Fed in focus

The Federal Reserve is expected to issue a statement on interest rates at 2:00 p.m. ET. A news conference by Fed Chair Jerome Powell will follow shortly thereafter.

The U.S. central bank is widely expected to leave interest rates unchanged on Wednesday, with investors likely to closely monitor any changes to the Fed’s 2% growth forecast for 2020.

On the data front, U.S. inflation data will be published at 8:30 a.m. ET. The Commerce Department’s latest quarterly services survey (QSS) and the Federal Budget for November will both be released slightly later in the session.

There are no major U.S. Treasury auctions scheduled on Wednesday.

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