Treasurys were little changed ahead of the Federal Reserve's widely expected decision to keep interest rates on hold, but yields have some more room to fall, said Pepperstone's Michael Brown in a note.

Bond yields dipped marginally early Wednesday as traders awaited a monetary policy update from the Federal Reserve.

The dollar lost early strength and declined as U.S. housing data surprised on the upside, Germany approved an aggressive spending plan and Russia agreed to a partial ceasefire, ahead of an expected interest-rate hold by the Fed.