US yields hit a 16-year high ahead of the conclusion of the Federal Reserve’s policy meeting on Wednesday, at which the central bank is expected to hold rates steady, but may indicate its willingness to keep monetary policy tighter for longer.

The benchmark 10-year Treasury yield reached a session high of 4.371 per cent, its highest level since early November 2007. The five-year Treasury yield also reached a 16-year high of 4.524 per cent, while the yield on the two-year note hit a two-month high of 5.114 per cent.

Treasury yields, which move inversely to price, track interest rate and inflation expectations. Tuesday’s jump indicated that traders expected Fed chair Jay Powell to signal the central bank’s willingness to keep interest rates higher for longer.