10-Year Treasury Note yields moved higher ahead of the January FOMC meeting.

10-Year yields edged higher during the session, closing at 4.22% and remaining above the weekly low established yesterday. The move followed a 5-Year Treasury auction which featured a weaker than expected bid to cover, though an increase in indirect bidders balanced the outcome. Despite the rise in yields, market volatility remained low, with the CME C Vol index declining slightly to sit just above a 3-month low. Market participants are now focused on the upcoming January FOMC meeting and the accompanying statement. While current market expectations suggest no change to interest rates tomorrow, the subsequent press conference is expected to provide insights into the outlook for the next meeting in March.