Treasury yields fell on Wednesday as investors await the Federal Reserve's next policy decision on interest rates, due later in the session.

The benchmark 10-year Treasury yield was down by around 2 basis points at 4.175%. The 30-year Treasury bond yield was down by more than 2 basis points to 4.824%. The 2-year Treasury note yield was more than 1 basis point lower, reaching 3.659%.

One basis point is equal to 0.01%, and yields and prices move in opposite directions.

Markets are expecting the central bank to keep interest rates unchanged in a range between 3.5% to 3.75%. Traders will be watching for any guidance from Fed Chair Jerome Powell on whether oil prices could impact future monetary policy.

"We'll be lucky to get even one rate cut this year, and if it does come, it would likely be towards the end of the year when there is a new Fed Chair and when there is more data to assess on the inflation and jobs front," said Rick Gardner, chief investment officer at RGA Investments.

Alongside the decision on benchmark lending rates, the Fed will publish its latest forecasts on economic growth, inflation, and interest rates for the coming years, known as the Summary of Economic Projections.

Traders will be looking to the latest guidance on the scope and size of any potential rate cuts later in the year.

Meanwhile, oil prices slipped on Wednesday despite escalating attacks on the United Arab Emirates' energy infrastructure, as rising U.S. crude inventories helped offset growing geopolitical risk premiums.

Prices of Brent, the international benchmark, declined 1.5% to $101.90 per barrel. U.S. oil prices fell 2.9% to $93.40 per barrel as of 3:44 a.m. ET.

— Pia Singh and Lee Ying Shan also contributed to this report