April 28 Reuters Euro area bond yields tracked Treasury yields higher on Wednesday, ahead of the close of the U.S. Federal Reserves policy meeting later in the session.

While no major policy changes are expected at the meeting, investors will pay close attention to Chairman Jerome Powells comments for further insight into the banks thinking on inflation and bond purchases.

Expectations of higher growth and inflation generated by a vast fiscal stimulus package in the United States have pushed up safehaven government bond yields this year.

The Fed has committed to continue its 120 billion a month of government bond purchases until substantial further progress is made in an economic recovery from the pandemic, but recent strong data has investors looking for any signs that the Fed may start talking about tapering the buying.

U.S. 10year yields continued to rise on Wednesday, touching their highest in nearly two weeks at 1.647, adding to a 5 basis point rise on Tuesday.

Germanys 10year yields, which are closely correlated with Treasuries, rose in tandem, to its highest in over a week in early Wednesday trade at 0.224, and was up nearly 3 basis points by 0706 GMT.

Italys 10year bond yield rose broke another sevenmonth high at 0.851.

Jens Peter Sorensen, chief analyst at Danske Bank, said the negative open to the European bond market was expected, given Treasury yields mostly rose following the European close on Tuesday. Bond yields rise when prices fall.

The upward…