Higher energy costs led to a bigger-than-expected spike in Canadian inflation, overnight data showed, lifting the loonie and triggering selling in the Treasury market.
Benchmark 10-year Treasury yields hit their highest since 2007 at 4.371% overnight and were last at 4.36%.
The Fed meeting leads a week jammed with central bank meetings and data over the next few days.
British inflation figures are due on Wednesday, followed by central bank meetings in Sweden, Switzerland, Norway, Britain and Japan on Thursday.
Rising yields have kept a lid on gold prices, with spot gold last trading at $1,929 an ounce.
Persons:
Brent, presser, Jerome Powell's, Sam Rines, Powell presser, Masato Kanda, Kristina Clifton, Miral
Organizations:
Treasury, Federal Reserve, Brent, Nikkei, U.S, STERLING, OF CPI, Bank of, New Zealand, Commonwealth Bank of Australia, Bank of England, Thomson
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presser China, SINGAPORE, Saudi Arabia, Russia, Asia, Pacific, Japan, Texas, Sweden, Switzerland, Norway, Britain, U.S, China, Australia, Argentina