In the previous session, the yield on the benchmark 10-year Treasury note rose to its highest since April 2014, as investors grew hopeful on the state of the U.S. economy — with a weaker U.S. dollar having also helped boost yields as of late.
Another factor expected to keep the bond markets on edge is the latest meeting by the U.S. central bank.
The Federal Open Market Committee is scheduled to start the first day of its two-day meeting. While no news conference is set to follow the two-day meeting, it will mark the last meeting chaired by Janet Yellen before Jerome Powell takes over as Fed Chair.
The central bank is widely expected to hold fire on changing its monetary policy this time around.
A slew of economic data is expected to be published. The S&P/Case-Shiller house price index is slated to come out at 9 a.m. ET, followed by consumer confidence data and housing vacancies at 10 a.m. ET and the Dallas Fed's Texas Service Sector Outlook survey at 10:30 a.m. ET.